If you’re looking for an apartment to rent, chances are you’re ready for the credit check the leasing manager will run to ensure you will pay your rent on time. However, not everyone has the credit they need to meet
the qualifications. Some prospective renters newer to the market occasionally get turned down for lack of rental history. Whether you have yet to establish credit, or you have a poor credit history, you may be told you’ll need to secure a co-signer in order to rent your apartment. What is a Co-Signer?If you don’t meet the minimum income requirements, have not established credit, or have a poor credit score, co-signers sign the apartment lease with you, taking on the financial responsibility should you fail to pay your rent. A co-signer will need to have a good credit score, be able to prove their income, and show that they have the capacity to pay for the apartment if needed on top of their own financial obligations. A co-signer could be your parent, spouse, or a friend. Co-signers can exist as a roommate or offer support from a distance. Either way, their name is on the lease; they have a legal right to your space, and a legal obligation to ensure your rent is paid in full. Co-signers also hold a lot of power as they are capable of taking over your lease entirely. What is a Guarantor?At Irvine Company Apartment Communities, a Guarantor is required in order to secure your lease. What’s the difference between a Guarantor and a co-signer? A Guarantor simply is there to help you rent your apartment and is held liable should you not pay your rent, and has no rights to live at the residence like the co-signer does. What Credit Score Do You Need to Rent An Apartment?Most rental companies want credit scores from applicants to be 620 or higher. People with credit scores lower than 620 may indicate they are a high-risk renter. Read more about what credit score is needed to rent an apartment. Here are some general guidelines on how credit scores are rated.
Work on Improving (Or Establishing) Your Credit ScoreIf the rental company or landlord requires a co-signer, don’t be afraid to ask them why so you can see about fixing it. Sometimes, there are certain items in your credit score you were unaware of, such as an outstanding bill or missing payment. Better credit means more apartment options. While there’s no “quick fix” to improve your credit score, with a little work it’s definitely doable! That way, when you continue your search for an apartment, you’ll have an easier time being approved. How Do You Boost Your Credit Score?One way to improve your credit score going forward is to pay your bills on time every month. On-time payments will help you improve your credit score because they show positive credit management, and because payment history is the biggest factor in credit scoring. If you are past due on any accounts, bringing those accounts current can improve your score. Next, if you currently carry high balances on your credit cards, you will want to begin paying them off as soon as possible. (Pay them off, but don’t close the accounts.) Utilization rate is the second most important factor in scores, so paying off your credit card debt will likely improve your credit scores. Tips on How to Maintain a Good Credit Score
How Long do Evictions Stay on Your Credit Report?Evictions can be found in a separate rental history report, which can be obtained through a tenant screening company. The eviction will typically remain on your rental history report for seven years. Although your credit report will not show whether you have been evicted, any unpaid rent or fees owed to a landlord or apartment complex may be sold to a collection agency or secured by a court judgment. That collection agency can then report the collection account to Experian. Collection accounts and money judgments remain on the credit report for seven years from the original delinquency date. For your reference, this is a general guideline on how long certain negative items may remain on your credit report:
Ready to find your dream apartment? Irvine Company has beautiful apartment communities in Orange County, San Diego, Los Angeles, and Silicon Valley. California Apartment Search What credit score do you need to cosign?If you're planning to ask a friend or family member to co-sign on your loan or credit card application, they must have a good credit score with a positive credit history. Lenders and card issuers typically require your co-signer to have a credit score of 700 or above.
Who can be a cosigner?Your spouse, relative, guardian, or friend can be a cosigner. Only one person can cosign for a private student loan. For instance, if two parents are willing to be cosigners, only one will be able to do it. Your cosigner is equally responsible for repayment of the full amount of the loan, not just part of it.
Does Cosigning hurt your credit?How does being a co-signer affect my credit score? Being a co-signer itself does not affect your credit score. Your score may, however, be negatively affected if the main account holder misses payments.
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