A key factor in a landlord’s decision to rent to your is whether or not you are a good credit risk.
A landlord will use a credit check tool in order to assess your credit worthiness, and depending on your credit rating, it will determine whether you will be able to afford the rent, pay on time, etc.
This section of the guide will give information on the importance of your credit.
To begin, let us get into your credit history. You build a credit file when you borrow money and pay it back; a credit file is a detailed report containing information about how you use credit and when you make payments.
It contains current and past information on where you live and work.
Credit files are maintained by credit bureaus, such as Equifax Canada and Trans Union Canada; they build a record of your credit history based on information given to them by creditors.
The report allows the landlord to make a good decision as to whether you are a good credit risk, with the primary concern being whether you can pay your rent on time each month.
Now you are probably aware that of what a credit rating is, however if you are unsure, it is a numerical score that creditors use to assess your credit worthiness. It is calculated each time someone requests it.
Now, for those who have absolutely no credit history, it makes landlords have little information to work with while reviewing your credit file. This includes people who have never had a loan or credit card. An empty file is not as bad as a a poor credit file, however it does not tell the landlord any potential financial risks when renting to you.
You should be starting out early to create good credit, it will be one of the key elements to you future.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
