Renters Need Good Credit Too !
As a Realtors, some people make the assumption that we have a
one track mind when it comes to Real Estate.
"Buy! Buy! Buy!" (I quote the words of
Jim Cramer.) You know what they say about people who ass-u-me. We actually have a more neutral position. It is just a
simple fact of life that people will choose Renting over Owning for many different reasons. In a blog post I wrote:
From Renting to Owning in 2 Steps, I mentioned, "We have family members who have never owned a home in their entire life (over 70 years!) and they are as happy as happy can be." For them, renting never kept them back in life nor did it leave them lacking in any way. Read the featured post by
Tim and Julie Harris and perhaps renters are more forward thinking in this new world we live in.
There are many reasons why people choose to rent.
Some folks are not ready to settle down, others travel too much, others enjoy the freedom of not being tied down with a mortgage, maintenance, and so on. But it is the people who do not choose to rent but have to rent that I want to speak to in this blog post. Those who do not have a choice due to being unable to qualify for a loan due to circumstance, poor choices, or any combination of the two. It is a growing phenomenon in this day and age where unemployment, the economy, and the housing crunch have negatively impacted people's credit and thus their ability to choose ownership as a housing option.
If you have to rent because you have less than perfect credit or too much debt, you may find that even renting poses you many challenges. If you have poor credit, some landlords will not even consider allowing you to rent their property. It is a fact, that renters with good credit have a greater chance of landing a nicer and better managed apartment or house. A discerning landlord wants to choose the best tenant and unfortunately for some, poor credit is often viewed as a reflection of your character.
If you are looking to rent a great home or apartment and you have poor credit, I have a few suggestions for you.
1) Prepare a Renter Resume. Gather some documentation regarding your bill paying history. Show your prospective landlord that though you may have had some tough times in the past, you are taking the high road now. Provide proof that you have been paying your phone bill, your electric and gas bills on time. Show that your car and insurance are all paid on time etc.
2) Have a professional looking letter of recommendation written by a mentor or your boss, a teacher or someone in a authoritative position. Avoid family and friends as referrals and provide contact information so your landlord can verify the source.
3)
Get a cosigner that has good credit. A cosigner such as a parent or relative who loves you and trusts you is an excell
ent option particularly if they have a strong history for paying their bills.
If you are ready to make the commitment to correct or improve your credit then here is our suggestion. Contact a reputable credit repair service such as our favorite
Philadelphia Credit Repair and it will be the best money you will ever spend. They will identify your credit problems, potentially be able to remove some defects immediately, and they will even provide a payoff strategy that will expedite the process.
If you are one of those renters with great credit. Congratulations ! Do your best to maintain your stellar credit, keep on top of your bills, and do not over extend yourself. Even if you will remain a renter forever, good credit will provied you with leverage in business and in life. Hey, you may even decide to become a home owner or at the very least, you will have the choice. Good credit certainly does not make you a better person but it does give you options.
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If interested in buying or selling properties in
Philadelphia,
contact Chris and Stephanie Somers at
thesomersteam@yahoo.com or 215-400-2612 . You can connect with us on
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