Ready to move in to that beautiful apartment? Not so fast. Perhaps you need to get a copy of your credit report first. Your potential landlord could ask for that piece of information that you’ve ignored for far too long – your credit score. Landlords in Canada are using credit scores to approve tenants. So don’t pack up your stuff yet, read the information below first.
After visiting an apartment and discussing with the landlord regarding your intentions to move in, your landlord may request for a credit check first. Landlords do this to simply determine if you will be able to pay your rent every month. They want to discover if the tenant is posing too much risk. No landlord wants to deal with late or missed payments. Your credit report can help them decide whether you are a good candidate to rent the property.
If you have taken any line of credit before, whether a credit card or mortgage, there is a record of how you’ve made the repayments. Whenever you pay for the loan or credit card, the information is included as part of your credit history. This means that if you make late payments, it is also shown on your report and lowers your credit score. The landlord may not approve your request to rent the space if you have had a history of late or missed payments on your report. It could be an indication that you will not manage to keep up with payments.
Most landlords perform tenant screening before approving anyone to rent their properties in order to avoid issues like evictions that cause so many problems. They want to determine whether the tenant has a good financial standing before renting their property. If a tenant looks suspicious, has a criminal record or has been evicted before, most landlords will not allow them into their property. The tenant screening report, which is a form of background check, is performed by property owners to help them get better candidates to rent out their properties.
If you have a poor credit score but still need to rent an apartment, all is not lost. One of the ways to get around this is to get your parent or a friend/relative to sign the lease with you. This will assure the landlord that incase you are unable to pay the rent in full, the cosigner is also obligated to make the rest of the payment. You can also offer to pay the landlord a good amount of deposit before moving in or just pay rent for a few extra months when you move in. Poor credit shouldn’t force you to live with your parents forever. You can take steps to seek credit repair Toronto and improve your chances of getting access to different financial products and also renting a home you desire.