Most people think that their Credit Score is all about getting a mortgage to buy home. And, while that is true, your credit score is used related all purchases that involve credit of any kind along with the rental of a house or apartment. It does not take much to impact your credit score negatively. If you miss payments or are consistently late on payments, it will negatively impact your credit score. If you default on a loan or file bankruptcy, your credit score will go down dramatically.
The agencies that monitor credit scores usually use the following ratings:
800 - 850 Exceptional
740 - 799 Very Good
670 - 739 Good
580 - 669 Fair
300 - 579 Poor
In order to get preferential interest rates on loans, your credit score would have to be Good or Above. It is possible to get a loan at a Fair rating; but interest rates will be higher because you would be consider a credit risk. Obviously people in the Poor category are probably not getting loans and or if they do get loans, the interest rates would be outrageous.
It is important to recognize that when renting a home or apartment as part of the application process, the owner or landlord will run a credit report. In choosing who to rent to, the owner will choose the tenant with the highest credit score. It is possible that unless the rental is in a bad area or in a less desirable location, an owner will not rent to anyone with Poor credit. So, it is really important to maintain as high a credit rating as possible by paying your bills on time.
