Canadian Renting Guide: The Credit Check 2
Tags: bad credit, bill payments, credit bureaus, credit history, credit worthiness, landlords, late payments, minimum credit card, minimum credit card payments, money, poor credit rating, renting guide
Continuing where I left off we are going to dive straight into how you can get a good credit rating.
To get a good credit rating you have to make loan and bill payments and minimum credit card payments on time. By making timely payments you are reflecting how responsible you are when given credit to use. Your credit rating will be favorable each time it is calculated.
If you consistently miss payments or make late payments, it will lower your rating and your credit worthiness.
Your credit rating will change over time based on how you use your money and credit. It can take at least 6 months for your credit rating to change, however if you have a poor credit rating it can take years to fix it.
Now if you know you have negative information on your file (missed payments, late payments, etc) then you have to realize that this information can hinder your chances of renting.
Negative information can stay on your file for six years, however this goes for positive information as well. Although we might not plan for us to miss a payment or have a late payment, just one can really hurt you.
Always try to make your payments on time, and if you find that you are struggling to pay off your credit card for example, it might be time to cut back and start using it less until you pay off the balance.
Before you go and meet landlords, or even consider renting, it is a good idea to check your credit file. Make sure it is in good standing and the information on it is correct. If you do find any missing information, contact all credit bureaus and have it corrected to ensure that your credit history is accurately represented.
Next time, you will find information on what to do if you are renting despite of bad credit. There are always options available, and if you do know them it will help you out in the long run.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
Related Posts
