Importance of Good Credit & Rental Applications

Good credit can help you get a lower monthly rent.

When applying for an apartment many questions are asked of the potential renter, including his prior rental history, criminal record (if any), employment status and credit information. Having good credit is one of the more important things to have when applying for a rental.

Lower Deposit Amount

Every rental property requires a deposit placed on the apartment, which is returned to the tenants when they move out, as long as the property is returned in the same condition it was rented in. With poor credit, the amount of the security deposit may be higher and some landlords will require additional months rent as part of the deposit.

Approval

In some rental situations the difference between having good and poor credit can be the difference in getting approved for the rental or not. Some landlords require a specific credit rating for applications to be approved.

Lower Rent Payment

Some landlords and rental communities will offer discounted rental rates for those with outstanding credit. Some companies will also offer rent based on the credit rating while others charge an additional monthly fee just for having poor credit.

References

• Student Source: Importance of Building Good Credit in College
• Direct Lending Solutions: The Importance of Establishing Good Credit Early
• Apartment Guide: Understanding Your Credit Score