Free Score Credit Score Check
It is often the case that when you enter into a financial contract with anyone you have your credit score checked in order to confirm you can afford the terms of the deal.
It is no different when entering into a rental agreement for a property. Many Home Rental agencies insist that you have to have a good credit history. They like to charge you to get this information on you the prospective tenant for this, with charges reaching 50 to 150 per person, however many companies offer a free score check.
We recommend to everyone thinking of renting that before you start out even looking to find a property or even if you are thinking of taking out a loan or a major purchase you get your credit history checked and get an up to date report and have a good look at it.
What is my Credit Score?
Your credit score normally consists of a three digit numbers and the smaller this number is could end up costing you hundreds, or even thousands and be the reason you are rejected for a loan or rental agreement.
Agencies often use these numbers to help determine your "credit worthiness” and being the wrong side of a good score can be the difference between acceptance and rejection.
What is in my Credit Report?
Your own credit report is a history of your personal financial choices you make and any monetary activities as reported by companies across the country and the government. You might be very surprised at who has been making entries on your credit report. When you do your credit check you can see how many payments have been made late, the addresses you have been located at and who has located you there, any finance loan or credit card that you have taken out OR has been taken out in your name.
There are often mistakes in these reports as sometimes the information is not updated or updated incorrectly and this can affect your credit worthiness in a detrimental manner. However you do have the right to ensure any mistakes these companies make are corrected.
Your personal report is likely to be several pages long as the more you have moved the more pages will be on it.
How is my Credit Score Calculated?
The number is calculated based on data and changes with time, often daily based on recent transactions you enter into. This is why it's important to get your latest report before you venture into the rentals market or you might get a nasty surprise.
Your actual score is based on various sources of information such as where you live, if you pay your bills on time and whether you are or have been sued or have filed for bankruptcy.
It is also based on your commitments and your ability to pay these regularly without defaulting.
National credit reporting companies sell the information in your report to almost anyone that requests it where they use it to evaluate your applications for renting a home, applying for credit, insurance, or even seeking employment.
What is a good Credit Score?
As mentioned it is a three digit number where bigger is better.
Generally a figure of over 720 is considered excellent and will enable you to get major purchases on credit and get the best loan rates there is. A good score is over 680 and allows you to enter into most financial transactions but not at the best rates.
The minimum credit score is generally accepted as around 620 to 680 and you will need to be at least in this range to secure a long term rental on the property of your choice. If your score is slightly below this you might be able to rent if you can find a guarantor or if you work on building your credit back up again.
Anything less than 500 can be extremely punitive to you in terms of any deal you want to do as interest rates and charges will be of the highest order – if you can get anyone to deal with you in the first place!
Where do I get my credit Report?
There are many companies or credit bureau's that offer FREE credit reports, free fico scores or credit reports. Companies that can report the information include Experian, Transunion, and Equifax to name a few. You will see many advertising on the web and maybe on this site.
Credit Bureaus are not responsible for the information in your credit report. There are the three main sources for information in these types of credit reports ; companies you've worked with, the government, and yourself with the data you provide when you fill out the application form.
What Information s in my Credit Report?
The majority of information comes from the companies that you've done business with. Specific information like your payment history, any account balances, application dates, account opening dates, and updates and inquiries reported to the bureaus by these companies.
Every time something significant happens they update the information held by the bureaus. Many people don't know that this is also where the bureaus get your name, your address, your date of birth and so on.
Other information can come from government sources, maybe where the government has intervened with. These are called Legal Records or Public Records and can include Bankruptcies, Tax Liens, and any Civil Judgements against you..