New Jersey Rental Guide 2022

At the very least, these creditors will require a larger security deposit or higher interest than an applicant with good credit would have to pay. As such, it is important to maintain good financial habits and check your credit score often. Some guidelines for maintaining good credit are as follows: • Pay your bills and loans on time. Never skip payments or pay below the minimum amount due. • Never borrow beyond your credit limit. Always have some credit available to avoid the appearance of financial difficulty. • Review your credit card statements for accuracy and dispute any misinformation with your credit card company. Likewise, request your free annual credit report every year and review it for errors; dispute any misinformation with the credit bureaus. • Open a savings and checking account with emergency funds. In an emergency, use funds from these accounts instead of your credit line to avoid accumulating debt. • Do not apply for too many credit cards; several credit inquiries over a short period may make it appear as though you are in financial turmoil. What is a credit score? A credit score, sometimes referred to as a “FICO credit score,” is a three-digit number (between 300 and 850) that reflects the overall “health” of your credit history. It is a record reflective of any payments you have (or have not) made towards debt. Why do I need a credit score? A credit score is required to obtain a loan or mortgage, an insurance policy, or residential property. In fact, your credit score will be reviewed by utility companies, cell phone carriers and any other service that provides service in advance of monthly payments (most pre-paid services will not require a credit check). Most lenders, insurance providers, and landlords will perform a credit check to determine the level of risk that comes with offering an individual their product or service; in other words, they want evidence that you are reliable and capable of consistently paying your financial obligations. What is a credit check? A credit check is when anyone willing to offer you a product or service requests your credit score from one of the three credit bureaus; some lenders may only request a credit score from one particular credit bureau, while others may request scores from all three. They will consider your credit score along with any other information you have provided them, to determine whether or not to enter an agreement with you. How is my credit score determined? Your credit score is determined by an analysis of your credit history (also called a credit file), which is a record of your credit-based finances – things like your payment history, debts, length of credit history/time on file, types of credit used and recent credit searches. This information is compiled into a credit report which is then used to calculate your credit score.

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Rental Guide: New Jersey