What to do if your apartment application is rejected
If your rental application was rejected due to a black mark on
your credit report, don't just ignore the situation out of
embarrassment... get a copy of the report and see what you can
do to tackle the problem. You may find your credit report has
errors or marks you didn't even know about.
Three companies distribute your credit information:
Experian: 1-888-397-3742 Equifax: 1-800-685-1111 TransUnion:
1-800-916-8800 You can call any of their toll free numbers to
find out how to get a copy of your credit report. If you request
a copy within 60 days of the rejected application, you can
obtain the report with no charge. If you wait any longer the
charge is usually about eight dollars per report.
Don't assume that you know why your application was rejected
without examining your report. Recently, my friend Dave Smith
Jr.* applied for a loan and was rejected. He knew his records
weren't the best in the world but decided to get a copy of the
report anyway--just out of curiosity. He was shocked to see
several black marks that were put on his report instead of his
father's. The credit bureau had confused his credit history
(Dave Smith Jr.) with his father's credit history (Dave Smith
Sr.) and noted a bankruptcy on his report! This wasn't all...
Apparently, a dispute he thought he'd handled with a car company
wasn't reflected on his report and the bad marks were still
there.
So how do you get errors taken off of your credit report? You'll
simply fill out the "dispute form" included with the report or
write a letter to the bureau about the problem. Unless the
credit bureau dismisses your request as "frivolous", they are
required by law to contact the companies in dispute within
thirty days. If they find they have made an error, they will
remove the bad information. However, if the company confirms
that the information on your report is correct, it will remain
there for 7 to 10 years.
If you feel the company is incorrect, you are allowed to write a
100 word statement which the bureaus are required by law to
distribute along with your credit report to everyone who asks
for it in the future.
If there are no errors on your report, but your credit isn't too
great, you'll need to do what you can to repair the problems.
While you might think one of the thousands of "credit doctors"
out there can help you... DON'T TRY THEM!!! Watch out for people
who claim they can "Erase bad credit...", "Help you start with a
clean board..." or who promise "You'll have great credit in no
time!" It can't be done. Some of their tactics are illegal and
can even get you thrown in jail. The only solutions for dealing
with black marks like late payments and bankruptcy are to:
wait it out and/or try to rebuilding your credit by getting your
finances organized There are many systems out there to help you
get things back in order and many of them are free. For a free
guide book for "Knowing and Understanding Your Credit" from
Fannie Mae, click here. For an article with links to serveral
free credit counseling groups, click here.
To find out what possible errors to look for in your report,
visit BankRate.com's "Credit How To Guide."
For great advice on understanding your credit report, visit
BankRate.com.
*names have been changed