The purpose of a tenant credit check is for your landlord to better understand whether you can afford the property you are applying for and to assess your payment behaviour. In other words, will you be able to pay the rent and if so, will you make your rental payment a priority.
Life is often less than ideal and can take a tricky turn unexpectedly. If you currently find yourself in a similar situation, it is important to be equipped with the steps to a healthy credit record:
- It may seem obvious, but settle your old debt.
- If you have already paid up your debt, remove the old paid up judgements and defaults from your credit profile to eliminate the negative data. This can be done by submitting your paid up letter to the credit bureau that listed the information.
- When applying, actively present yourself in the best light in terms of your income security. Commission earners pose a risk for credit providers - offering a bigger deposit or providing a long-term employment history or a surety are powerful motivators. If you are self-employed, make sure that your business and personal bank accounts are separate so that your affordability can be accurately assessed.
- If your affordability is in question, you can decrease your expenses or increase your income through strict budgeting, considering a joint application, or signing with a surety.
- Keep your credit score high. Live within your means and settle the minimum balances on your credit repayments before or by the date that they are due.
If you find yourself in a situation where you are not able to meet your payment commitments on time and in full, speak to your credit provider first to negotiate new payment terms rather than defaulting and allowing your credit record to reflect an inability to manage your finances.
Your potential landlord is looking for a tenant who takes their payment commitments seriously and with step by step consistent action, that could be you.