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Renters Need Good Credit Too !

By
Real Estate Agent with The Somers Team at KW Philadelphia
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.
House for rent in Philadelphia
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 excellCredit repair in Philadelphiaent 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.


The Somers - Chris and Stephanie Somers
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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 Facebook and Twitter .  For investment properties, check out our new investor site at Philly Investor Hub !

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Areas of specialty include Northern Liberties, Old City, Center City, Fishtown, Graduate Hospital, Art Museum, Queen Village, Pennsport, Old Kensington, Port Richmond, Bridesburg, Society Hill, Loft District, Spring Garden and more !

Comments (6)

Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
The importance of credit goes far beyond just buying a home, buying a car, or getting a credit card. In fact, I'd guess the importance of good credit is more important now than it has ever been.
Apr 22, 2009 03:54 AM
Michael S. Mackey
CENTURY 21 All Islands - Mililani, HI
REALTOR ABR, CRS, GRI, RSPS

Very important for renters to know these facts about their credit. Renting is also a valid choice, as you mentioned in your post. Good blog!

Apr 22, 2009 05:06 AM
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

Christopher and Stephanie:

I little bit back a wrote about our new disfuctional credit society. With all the foreclosures and late payments etc. How will all these people navigate their lives?

Richard

Apr 22, 2009 02:19 PM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Jason - So true, yet so many people are reckless with their credit.  I think the importance of these types of topics should be taught in Junior High and High school to improve awareness and understanding in people at an early age !

Michael - Thanks !  I totally agree with Stephanie (who wrote this post) that Renters need to stay on top of their financial lives to position themselves to be ahead of their competition when Renting and be positioned to purchase a car or house when they are ready !  Their credit scores are critical when they are ready to move forward.

Richard- Good question !!  Time will tell on that one.       ~ Chris Somers

 

Apr 23, 2009 05:42 AM
Anonymous
Liana Barbedo, Intention Marketing -- www.showyourintention.com

I had to become a renter for a little while and having been a homeowner for so long, I had actually forgotten that credit scores and proof of income were just as important for renters!!! 

There are some pretty good resources on the web aimed at educating renters, but I definitely think real estate agents can play a big role when it comes to educating consumers ... so, nicely done Stephanie, great post!

Apr 23, 2009 04:55 PM
#5
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Liana - Thanks !  Sometimes agents forget about these types of consumers and do not know how to best consult them.  It is important to understand the goal's of each individual and help them move forward in the direction that is best for them, and not best for the Agent : )    ~ Chris

 

Apr 23, 2009 11:48 PM