A person's credit worthiness is always measured by his credit report. Many of us are always under the assumption that such reports and checks are used only by loan lenders and credit card companies. These lenders are, however, not the only people who employ the use of credit reports. Landlords, often, employ them to analyze a person's credit worthiness and his ability to pay rent on time. This article gives you some information about no credit check apartments.
A credit check apartment, as the name suggests, is an apartment that a person can get without a credit check. Of recent, they have been preferred by people due to the fact that economic recession has caused a considerable amount of damage to people's credit report.
In a normal case, when a person applies for a flat, the landlord follows quite a ruthless selection and approval procedure. Some of the common facts that are checked by the landlord include, income of the applicant, credit report, liabilities background, etc. The liabilities and income are basically checked by the landlord in order to confirm, whether the tenant would be able to pay timely rent or not. Often, applicants also avail an unsecured loan in order to amass the amount that they need to pay for the rent. Such a check is basically done due to the fact that rent is a monthly liability and a default causes sever losses to the landlord. After all these facts are clarified by the landlord, the flat is leased till a specific time period.
In the recent past, recessionary economic conditions have harassed the credit reports of many people. Thus, people with well-paying jobs have suffered from their bad credit ratings. In such a case, irrespective of well-settled and high projected rate of salary people have been denied a rent lease. Thus, realizing such difficulties, several landlords have come up with different schemes such as the no credit rentals. While renting out such an apartment, the credit history of a person does not even come into the picture; only the background and salary are reviewed by the landlord. However, this comes at a price, for example, the rent has to be paid in advance or the house is subject to a higher deposit. These houses have become popular in the past decade, as the popularized concept of credit report does not work in the favor of all the people. Students or youngsters who have just graduated do not have a credit history. In addition to that, they also do not have very hefty salaries. Since both these factors contribute towards a poor ratings, their chances on any ordinary flat are slim. No credit check rentals, however, come in handy in such situations.
Such houses also tend to have quite unique lease contracts. Instant payment of all rent for the designated period of lease, notice period of leave, etc, are some important elements of such a contract. In some cases, instead of prepaid rent, landlord's agreement with the tenants stipulates that in case of a rent default, they would leave the flat in the shortest possible time. The no credit check payday loans are often used by people to pay their rent in such cases.
In spite of the success of such provisions, such houses tend to have some drawbacks. Surveys and reports about them show that they tend to have a poor quality of construction or low maintainability. However, if you are lucky enough, you shall be able to find one for yourself a good one. Just be on the look out and apply as soon as you see advertisements concerning such apartments.