I do not have the best credit, I have two bad spots but they are fairly old. Is that a problem when trying to find apartments?
— Credit Worthy in Brooklyn
Dear Credit:
Most landlords will run a credit check on a prospective tenant. I’ve even seen ads requiring a FICO credit score of at least 650 to be considered for an apartment. Landlords take a gamble renting their places, so they need to be careful and make sure that the new tenant will pay the rent regularly.
That your problems “are fairly old” may mean that you don’t have much of a problem at all. If you have paid your bills on time since then, you should be in a good position with a small landlord. A big management company may be a bit tougher to deal with, but if the trend is favorable you will still probably be OK.
When was the last time you checked your credit score? For New York residents, satisfied judgments and paid collections remain on your report for five years. Most other negative information stays on for seven to 10 years. Good news, such as timely payments and paid-off debts, stays around for 10 years.
The first thing you need to do is get a copy of your credit reports as compiled by the big three reporting firms of Equifax, Experian and TransUnion. They will try to lure you into paying for regular access to your information but don’t go there. They are required by law to make your report available to your free once a year. Go here to see them. If you find anything incorrect, the reporting agency is required to correct it. If you dispute something or want to explain circumstances, you can request that the agency includes a written statement from you.
Unfortunately, the one thing you won’t get on your credit reports is your all-important FICO score, which each reporting firm calculates slightly differently. Again, in order to see your score, the agencies will try to lure you into an open-ended $30 a month “credit monitoring” program that is useless to you. Instead, go here and estimate your score. Don’t fall for the $60 offer to let you see your actual scores. The best way to actually see your score is to make a good impression on your prospective landlord. Tell him your situation and ask if he’ll share the report with you. Why not? You’re probably paying for it.
Good luck!
David Crook is a veteran journalist and author of The Complete Wall Street Journal Real-Estate Investing and Homeowner’s Guidebooks. Do you have a question about anything real estate-related in NYC? Write him at askus@streeteasy.com. For verification purposes, please include your name and a phone number; neither will be published. Note: Nothing in this column should be considered professional legal advice. If you have a legal issue, consult an attorney.
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