Credit Reports and Tenancy Rights

Credit reports prepared by the top three credit reporting agencies are normally used by lenders for determining your credit limit and the rate of interest. Homeowners can also use the copy of your credit report for determining your ability to pay rent in time. You can increase your chances of getting a rented accommodation if you maintain a clear credit report that is free from negative entries.

Negative entries on a credit report do not always occur due to your bad credit history. In many cases, these are a result of human error or miscommunication on part of the creditors. Negative entries can seriously hamper your chances of getting a rented accommodation, as homeowners normally prefer tenants who have a clean credit record and a good credit score. This makes it necessary that you check your credit report on a regular basis for detecting any inaccuracies that might be present.

You can request a copy of your credit report from any of the top three credit reporting agencies namely Equifax, Trans Union, and Experian. After this, you need to check the report for common inaccuracies and report it to the agencies. Errors can easily be found on a credit report, as all the top three credit reporting agencies collect data from varied sources and may make mistakes while uploading these onto your credit report. Once the top three credit reporting agencies get to know the errors, they will investigate the entries and alter your credit report if your claims are correct. This will increase your chances of getting a rented accommodation.

While negative entries that are a result of human errors can be deleted easily, entries that are a result of bad credit history take around seven to ten years to be eliminated from your credit report. If you have similar entries on your credit report, you might be tempted to contact credit report repair firms that promise freedom from credit related problems. However, you need to address caution while dealing with such firms, as very often they might offer illegal advice and suggestions. Following such advises may create problems with the IRS and may further complicate your tenancy problems. It is better to use legal methods for maintaining a clear credit report even if they require a long time to take effect.

Instead of using illegal methods, you need to mend your own spending habits and limit the use of credit cards. If you are in urgent need of a rented accommodation, you can get help from a relative or close friend who has a clear credit record and can sign the tenant agreement on your behalf.