Tips for Boosting your Credit Score before Applying for a New Apartment

When getting a new apartment, you are required to do a lot of paper work. Luckily, most apartment applications occur online, especially since the onset of the coronavirus pandemic. Landlords and property management companies will still ask that you provide personal information so that they can conduct a thorough credit and background check. 

Different states, cities, and apartment complexes will have different requirement, but most rental applications will request similar information for each applicant, so that they can verify your identity and your ability to pay rent. This typically includes information such as: personal contact information, social security number, current and previous addresses, employer information with proof of income, emergency contacts, and vehicle information. 

Even though it is all basic information, rental applications can still be extensive. Once everything checks out - meaning you have a clean criminal record, a good rental history with no evictions, and have proof that you can afford your new place - a new home will await for you on the other side. 

To help you obtain a new home here are a few wats you can manage and maintain your credit score to amaze your potential landlord:

Know what is on your credit report ahead of time

It is reassuring to know what your prospective landlord will be seeing when they run a credit check. Before your apartment hunt visit AnnualCreditReport.com and download your free credit report from each of the three main credit bureaus: Experian, Equifax, and TransUnion. You can download your credit report weekly for free through April 2021. (This is typically annually)

Once you download your reports, it is vital that you review them carefully. If you have student loans, or any other credit balances, it should come as a surprise to find them on your report. You will also be able to see your credit score. 

You want to look out for negative marks that you may not have known about. If you see something that is inaccurate or an error, make sure you dispute the errors right away. It is better to send a letter by certified mail rather than using their system so that you have the comfort of knowing a real person is looking into the issue and you can verify that they received the dispute.

Improve Your Credit Score

The best way to prime your credit score, is to first know how it is calculated. The most popular is the FICO score model that looks at five key factors:

• Payment History (35%): Whether you have paid past credit accounts on time. 

• Amounts Owed (30%): The total amount of credit and loans you are using compared to your total credit limit, aka your utilization rate.

• Length of Credit History (15%): The length of time you have had credit. 

• New Credit (10%): How often you apply for an open new accounts. 

• Credit Mix (10%): The variety of credit products you have, including credit cards, installment loans, finance company accounts, mortgage loans, etc. 

To boost your credit score quicker, pay off as much credit card debt as soon as possible without completely draining your cash reserves. Do this more than 30 days before you apply so that your credit score can refresh. 

Finances

You will be asked to provide proof of income when you apply for your new apartment, which is typically your pay stubs and/or tax returns. In addition you should also be prepared to provide statements for both your checking and savings accounts. It is always good to make sure you have proof that you have savings set aside for your security deposit and incidentals like facility fees, parking fees, and maintenance fees. 

 Be Weary of New Credit Inquires

If you can avoid it, don’t apply for any new credit cars, auto loans, or any other kinds of credit products right before you apply. When a lender performs a credit check, it leads to a “hard inquiry” into your credit history. Hard inquiries appear on your credit reports that are pulled by the lender and may results in a temporary decrease in your credit score. While the decrease is usually insignificant, around five points, it can send red flags to the potential landlord. 

Build Up Your Savings

Before moving into your new place, prepare for your increased cost of living. If you have the ability to live rent-free with a family member, take advantage! Every month, or even better, every week, set aside what money you would be spending on rent. After a few months you will build up a nice emergency fund. 

These are just a few helpful tips to get you ready for your move! If you are denied, check over your report for inaccuracies. If you need help, contact us for a free consultation

Plaintiff Brings Claim Against Employer

A Plaintiff by the name Gennaro Mattiaccio II was terminated by Defendant DHA Group for alleged misconduct. On July 21st, 2020, The United States District Court, District of Columbia issued an opinion in Matticcio v. DHA Group., Inc. that said the Plaintiff had standing to pursue claims of Fair Credit Reporting Act (FCRA) violations against his former employee. The DHA Group used a background check that was used to justify Plaintiff Maticcio’s termination from work.

Mattiaccio II claims that these background checks were retaliation for a complaint he had filed against DHA Group. Typically, pre- and post- employment background checks that investigate employee misconduct are exempt from the FCRA.

Mattiaccio II brought two FCRA claims: Defendant lacked proper authorization to perform the background checks, since they were not clearly formatted and Plaintiff did not authorize a post-employment background check and was given neither a summary of rights or an opportunity to review his report before his termination. 

District Judge Colleen Kollar-Kotelly wrote an opinion that has been cause of the latest decision in almost a decade-long dispute between the two parties. Judge Koller-Kotelly granted in part and denied in part the Defendant’s Motion for Summary Judgement for lack of standing under Article III of the U.S. Constitution.
She states that the Plaintiff has a standing on claims that he did not authorize the post-employment background check but he cannot bring in the claim that he did not authorize the pre-employment background check. She states that he also has a claim that he was not provided a copy of the report or his summary of rights before the adverse action was taken against him. The case has now been taken to court. 

The FCRA promotes the accuracy, fairness, and privacy of consumer information contained in the files of Consumer Reporting Agencies (CRA’s), protects consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports, including consumer credit information. 

Employment Screening Resources (ESR) wants to remind us that allegations made in a lawsuit are not proof that a business or individual violated any law, rule, or regulation. The allegations written in this blog are not factual at this current time. 

If you feel that your employer has put a violation wrongfully against you, contact us to take a look at your case and we will provide you with information and let you know if you have a claim.