Bankruptcy Facts, Repair Credit after Bankruptcy, Philip Tirone

In last week’s blog, I gave you three tips about renting and credit checks:

1. Highlight your strengths.
2. Explain what happened.
3. Be willing to compromise.

In this week, we will look at three more tips about renting and credit checks.

Renting and Credit Checks Tip #4: Add a 100-word consumer statement to your credit report.

A consumer statement, also known as a summary explanation, is basically a note from you that creditors see when they pull your file. Of course, they will see the bankruptcy facts on your credit report; if this bankruptcy was caused by a medical condition, or other severe circumstance, the consumer statement can be used to explain why your score is low. Let the landlord know to look for the consumer statement and give the documentation proving your case.

Be sure to read my blog about consumer statements to learn how to add this 100-word statement.

Renting and Credit Checks Tip #5: Try to avoid a credit check.

Different landlords have different processes for selecting tenants. Some use a careful selection procedure that require spotless credit, references from previous landlords, and an interview. A landlord who is hungry for tenants will settle for a fat deposit and a mediocre score.

Still others will use a gut feeling, basing their decision by considering the personality and character of the applicant.

Of course, if you approach a landlord and ask if they are running a credit check, you have basically just confirmed your bad credit. Until you know that the landlord plans to run a credit check, you might fare better to keep your bankruptcy facts under lock and key. Instead, look for landlords who are renting rooms in their home or guesthouses as they are less likely to do a credit check than corporate landlords.

When you find an apartment you like, contact the landlord and ask a few questions, such as:

1. Does the property have air conditioning?
2. What is the guest parking situation?
3. What criteria are used to approve tenants for the rental?
4. What is the down payment?
5. Are there any utilities (e.g., water, gardener) included in the cost of rent?

Pay close attention to the landlord’s answer to the question #3. If the approval process requires a credit check, you will have to be upfront about your situation.

Renting and Credit Checks Tip #6: Try to avoid a credit check.

Immediately begin the process to repair credit after bankruptcy. Learn how to improve your credit score so that renting and credit checks are never a problem in the future!