Weekend Q&A

This weekend, most questions that came in were somehow related to credit reports. Many of you are concerned regarding some information that may arise when a landlord requests your credit report. However, as we will see later, there’s no need to be too worried. When the landlords take a look at your credit report, they do that simply to see whether you are who you say you are. And, there is not a lot that cannot be explained if you try. That is why the main thing to do when you’re applying for a rental is to be as transparent as possible. Here are some of the questions that came in regarding some issues with credit reports.

How can I get a full credit report?

This is a really good question. There are three major credit companies – Transunion, Experian and Equifax. You can get your credit report from them. However, there is also one important thing you should know. Namely, you are allowed one free copy of your full credit report every 12 months.

I highly recommend going online and requesting one. You would be surprised at how much information there is about you, what you do, where you’ve been, the debt you’ve had, etc. A credit report is actually a statement holding all the information about your credit activity and your current credit situation. A landlord might request your credit report to check whether you’re a trustworthy individual. And, just like your home, your credit report needs to be clean and organized. That is, just like you should declutter from time to time to keep an organized home, you also need to fix your credit report to open up new possibilities in the real estate sector.

Caption: You’re allowed a free copy of your credit report every year

Alt tag: Paper with words ‘credit report’ written on it

Why should I get a full credit report?

But, you may ask yourself – why should you get a credit report if the landlord will get one? Well, because we often forget things pertaining to our financial history. You don’t want to be blindsided with something that happened a long time ago, but you forgot. If there’s anything on your credit report that you need to clear up, you need to know about it beforehand. You should not just leave it sitting on your credit report.

Also, if there’s something in your credit report that you need to address, you can always talk to a realtor. They are professionals that deal with these types of things on a daily basis. You’d turn to other professionals when you need help in other areas, right? For instance, if you’re moving from Maryland to NY, you’d hire professionals to help you. Well, you should do the same with credit reports. Real estate agents can help immensely with presenting the situation to your possible landlord.   

How can I overcome a previous eviction that still appears every time I apply for an apartment?

Evictions are fairly common, and, based on the market in New York, the situation might even get worse. But the main question here is – why were you previously evicted? Some people get evicted because they stop paying rent, but also, because they stop communicating with their landlord. However, that is not something you should do. There are ways you can work things out with your landlord if only you try to discuss it. Communication is key. So many people withdraw when they face a difficult financial situation. We don’t want to talk about it due to many reasons. But it’s necessary to find peace and tranquility in small ways, even in discussions about our past. So, never be afraid to explain your situation. We’re all human and we understand one another.

Caption: Communication is key

Alt tag: Two people sitting at a table with a tablet and a computer

Try to fix the eviction records and be transparent about your credit report

Evictions take a while to come off, they’re almost like bankruptcy. You would have to contact the courts. You also have to contact an attorney that specializes in the matter to fix the issue.

But, take note, when you apply for a rental, always be transparent. Transparency, as well as communication, is pivotal. There’s no need to spill everything. But, this is something that the people involved need to know before they run your credit, that is, your background check. Mention it before you apply for a rental.

Also, write a letter to your landlord and explain the circumstances from that time. It will also give you the right to an interview with the landlord, where they can see if they want to take you on as a tenant. At the same time, your broker/real estate agent that you’re working with will be able to help you overcome the issue. So, the bottom line is – be transparent with the agent you’re working with.

Offer more security deposit

In addition, another good thing is to offer more security deposit. More money means more security for the landlord. Coupled with your honesty with the previous eviction, you will increase your chances of the landlord actually accepting you as a tenant. If your credit report is great, and the only thing holding you back is that one eviction, this is the way to bypass it. As long as everyone’s in the know, especially your realtor, they can navigate the problem. They can even suggest various solutions.

That is why it is a good thing to get help from an unbiased real estate agent. Again, if you’re looking for help in other spheres of life, why not in this one? At every point in life, it’s important to know who to turn to. You’d go to a bank if you need a loan. You’d ask your friends or hire professionals should you need some help with packing. Well, treat this issue the same. Real estate agents are there to help you get that apartment/house.

How can I explain my not-so-perfect credit report to a landlord?

First, before the credit report comes back, share possible issues with the agent that you’re working with. If you can explain something on your credit report, do it. Sometimes, a poor credit report is due to student loans or medical bills. And that’s alright. There are times that we need help and that is something that anyone can relate to.

Caption: Share issues with your credit report with your agent

Alt tag: Man and woman sitting at a table with a laptop on it

This is when you need to write that letter. Outline it with your agent. If you have a history of paying in time and your current landlord is willing to write a verifiable reference letter, this will help immensely.

Your agent is key here. Be honest about your credit report and explain it before it’s run. If you have no idea that something will come up, make sure to explain it as soon as you can. Sometimes, we forget things that happened a while back. Make sure to let your landlord know that you’ve fixed the problem. That is, try to explain what your situation was back then and how you’ve moved on.

Life is a constant moving battle. The only way to move forward from problems such as these is to be true and transparent. Also, it is incredibly important to work with someone who is transparent and ethical.

The moral of the story is – let’s get everything out and you into your new home.