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Credit makes the world go round! In today’s tough economy, positive credit can go a long way to getting what you need and that also means securing your finances. Because credit has become the standard used by employers, banks, credit providers, and landlords to assess your affordability. When your credit is negative or considered “bad” it limits what you can apply for and where you can get approved for things like renting an apartment or getting approved for a personal loan.

Fortunately, negative credit doesn’t mean the end and there are ways you can rent an apartment despite bad credit.

What is Negative or Bad Credit?

Your credit represents your financial history which includes your current monetary status, your past spending habits, and your ability to make payments on time. It is all about determining your debt management practices.

Credit is indicated by a number or score called the FICO score. A good credit rating ranges from 670 to around 739 while a negative credit score starts between 580 and 669. A really low score is between 300 and 579.

What are My Options with a Negative Credit Score?

When you have a negative FICO score, you may feel that your options are very limited when it comes to financial pursuits. Can you take on a loan, what about applying for a mortgage? Although poor credit can put some plans on the backburner, it does not mean that you can’t pursue your financial goals.

The way to repair bad credit is to start working on it as soon as possible. Start paying what you can afford every month to your credit card or outstanding loan. The longer you can sustain a pattern of good financial habits, the better your financial standing.

Getting Approved for an Apartment

Whether you are renting for the first time or you are looking to move to a new apartment, if you have outstanding debt and a compromised FICO score, it can prevent you from getting approved.

There are credit repair steps to get approved for apartments and it starts with debt management and finding the right apartment to rent!

You can apply for a second chance apartment. These types of apartments focus on renting to applicants with a negative credit rating and an affordable income. Rental prices are also considered fair to allow you to work on your credit and save for a future apartment or buy your own home.

The best way to fix credit is to work on it every week and every month. Create a plan of what you need to do to get your finances back on track and you could achieve your financial goals in a matter of months!