There are few things in life that carry as much weight as a person’s credit score. This can determine whether someone is able to take out a loan, rent an apartment or purchase a car.
One of the examples of a momentous purchase is getting an awesome apartment in a major city. Luckily, companies like Blueground have come along to make this process much easier, even with subpar credit. With their massive online selection of fully-furnished apartments, you can rent a turnkey space in some of the country’s best neighborhoods. Whether you need it for a month or a year, Blueground has got your back thanks to its variety of flexible leases. However, not everyone provides the kind of assistance that Blueground does. That’s why you should always be aware of your credit score and be constantly working to improve it. Just because someone knows their credit score, however, that doesn’t necessarily mean that they know whether it is good or not. This article will explore what’s a good credit score and how someone who has a poor credit score can work to improve it.
One of the biggest things that makes understanding what’s a good credit score and what’s a bad credit score so confusing, is the fact that there are various rating models upon which credit scores are based. Depending on where someone gets their credit score from, it could show up with different numbers. The systems use slightly different rating categories.
The two main types of credit score models are FICO and VantageScore Solutions. Within the FICO model, there are two different types of scores: the Base FICO score and the Industry-specific FICO score.
With the Base FICO score, it is generally the same as with any other model. It is meant to figure out the chances that an individual will not make a payment on an account. With the Industry-Specific FICO score, it’s tailored to whether the individual will make a payment on an account.
Since there are different models, the ranges that they use will vary slightly vary from one to another.
Those looking to find their VantangeScore rating can go to try out one of their free credit score partner sites.
If you’re looking for an estimate of your FICO credit score, you can use the free estimator here which will ask you 10 questions to appraise your situation.
The Industry-specific FICO model goes further than the previous two models on both ends of the spectrum:
The general consensus around town is that a minimum score of 650 is necessary to rent an apartment in NYC. From 700 and up, you are in the safe zone as a prospective tenant.
Someone who falls into the poor credit score category will likely find that they are not able to get approved for many loans or unsecured credit cards. If they do get approved for something, chances are the financial terms will not be very good. Even someone with a fair credit score will likely find that they do not get approved everywhere and will not be getting the best financial terms possible.
Even for someone who does fall into this category though, there is still hope. There are a couple of ways that individuals can work around poor credit scores to still reach their goals such as a beautiful place to live or their dream vehicle.
A credit score is something that the vast majority of landlords will ask for when applying for an apartment. Unfortunately, these landlords all know what is a good credit score and therefore will immediately know whether or not the individual meets their requirements or not. A person can avoid this uncomfortable situation by bringing a cosigner with them when applying for the apartment.
A cosigner is someone who legally agrees to be responsible for paying the rent if the renter ever fails to. Having a cosigner can give someone with a poor credit score leverage since it helps the landlord to have a guarantee that they will always get their money. For renters from abroad who haven’t had a chance to build up credit in the U.S. or students who haven’t had a chance due to their age, a lease guarantor may interest them.
Another option is to locate apartments that do not run a credit check in the first place. There are a variety of ways to locate no credit check apartments in the city. This can help avoid the problem altogether since the landlord will have no way of knowing that the individual has a poor credit score.