3 Renting Tips You Should Know

So you’ve made up your mind, and you’re finally going to move into your first apartment. But WAIT! Before you get too comfortable with your new-found freedom, beware. Late rental payments can hurt your credit report. Make sure that your first experience out on your own is a good one and take a listen to a little advice from, perhaps, some folks who’ve learned the hard way.

Tip #1 – Budget wisely. Experts suggest, the rent should be no more than 25-30% of your annual wages. Take a look at your income after taxes and subtract your expenses. Include food, household supplies, phone, cell, car payment, car insurance, parking fees, credit card bills, clothing, cleaners, gas, internet, healthcare, school loans, and entertainment. What you have left, is what you will be able to afford for your new place. This total will need to include rent as well as any additional services, such as natural gas, water, electricity, cable and garbage pick up if it is not included in your rent. Make sure to ask your landlord to put in writing what is covered in your rent and what is not. Remember an eviction will mar your credit report.

Tip #2 – Think about the deposits. The security deposit is most often equal to one month’s rent and the other deposits will range anywhere from $25 to $100.  If you’re moving in the middle of the month (not recommended) you may have to pay for the remainder of that month’s rent as well as your first full month’s rent before you’re allowed to move in. Plan ahead of time BEFORE you sign the lease and move in.

Tip #3 – Use credit cards in moderation. Having credit cards and paying off your debt in a reasonable amount of time will only strengthen your credit report. In order to establish credit, you need to have creditWhen you use credit cards, make sure that you pay your debt down and avoid carrying a balance for over three months.