[S]ometimes when you are filling out a rental or job application, you’ll come to a page that asks you to sign and authorize a credit check. Most people will sign it, hoping for the best if they have less than perfect credit. Even when you do sign it, you may wonder if that was the best course of action or if you should have refused or explained your situation.
Refusal to Allow a Credit Check
If you refuse to sign the authorization, you are basically saying goodbye to the rental unit or job. Many of these documents state that a credit check is a requirement for approval or consideration. Most employers and landlords will assume the worst if you refuse to sign it. Besides, your credit may not be as bad as you think, especially since many applicants don’t really understand that the employer or landlord is looking for.
What If You Have Bad Credit?
Should you alert them to your bad credit before they see it for themselves? Not necessarily. If the information is older and you have other positive credit listed, it would be best not to say anything. You don’t want to draw their attention to the negative information or give them a bad feeling to start with.
On the other hand, if your negative information includes a bankruptcy or judgments or if it is recent and vast, you may want to plead your case before they see it in writing. It’s best not to make a big deal or to sound like you are making excuses. You can say something like, “I noticed you wanted to see my credit report. Let me know if you have any questions about it. I had some issues in the past that I’ve worked through.” This lets them know to expect some information they aren’t going to like, but it also tells them you are aware of it and you’ve worked to correct the problem.
It can be hard to know whether to address the issue of credit problems with a potential landlord or employer. You may have to use your best judgment as to whether it will help or hurt your cause.
[Y]ou get a lot of advice when you research online about how to improve bad credit. Some of it is not so good, a waste of time or worse. There are three major mistakes that people make when they are trying to rebuild their credit rating. Mistake #1 – Hiring a Credit Repair Company You’ll […]
[F]or people with bad credit, they are often looking for the easiest or best ways to improve their credit scores. While the quick-fix schemes promised by some companies don’t really work, there are some steps you can take on your own. You won’t see an improvement overnight, but your credit score will climb over time. […]
[Y]ou hear a lot about credit scores when you’re applying for a loan or credit card. You may also hear about good credit and bad credit when you get insurance or rent a vehicle or apartment. With all of this hype about credit scores, why do they matter so much? A Picture of a Moment […]
[I]f you’ve been researching about how to improve your credit, you’ve probably read about credit reports. Many times, articles and other information assumes you know what a credit report is and how it looks. For those without that knowledge, here are the basics. What Is a Credit Report? It’s a list of all of your […]
[T]he car broke down and the mechanic says it will cost $300 to fix it. It may not sound like much money, but for many people it means they can’t pay another bill. The reason is they don’t have an emergency fund, which can help them pay unexpected bills and protect their credit rating. An […]
An emergency fund is something every adult should have. It provides funds to have on hand in case an unexpected expense comes up. It may be a car repair, sick person, home repair or other expense that you didn’t budget in. Many people try to build an emergency fund but fail. Here are three things […]
You’ve probably seen the ads for debt counselors, promising to help you get out of debt and improve your credit score. You may wonder if they can help you and if you should find a company to begin working on improving your credit score. Who Needs Debt Counselors First, you need to understand that many […]