Landlords want to be assured that you will pay your rent on time every month. They look at your credit report and bill-paying habits to determine your eligibility to rent. The same goes with lenders and determining your eligibility to have a mortgage.

Your credit report is a record of money you’ve borrowed, your history of paying it back, and how much open credit is available to you. Landlords and lenders rely on the information in your credit report as it signifies the likelihood that you will pay your rent or mortgage!

One thing that a loan officer is looking for when they review your history is consistency. They want to see that you have been a consistently reliable renter throughout. They want to see that you have made your payments on time every month for however many years you have been renting. While one or two late payments might not be a deal breaker, if you often made late rent payments, it could be. You need to display that you can be counted with regular mortgage payments. If you have been responsible in the past, they will feel better about giving you thousands (or even hundreds of thousands) of dollars for a mortgage.

Key Points:

  • Check your credit report
  • Pay your bills on time
  • Keep credit card balances low