The Reason Why Illinois Millennials with Low Credit Scores Have Trouble Renting Apartments

Often, Illinois Millennials with low credit scores have trouble renting apartments, but the credit scores themselves aren’t always to blame.

As many Millennials know, renting an apartment in Chicago or anywhere in Illinois isn’t necessarily easy. Landlords typically check credit reports as part of the application approval process, and applicants with bad credit are often denied. However, a recent study reveals that it isn’t just a low credit score that hurts a Millennial’s chances of renting an apartment in Illinois. As it turns out, there is one particular type of negative credit report item that causes a lot of landlords to reject rental applications. In fact, about one-third of Millennials who are denied rental opportunities are turned down for this reason.

Why Having Accounts in Debt Collections is the Worst Thing for Millennials Looking for Apartments in Illinois

According to a recent study conducted by Rent Café, more Illinois landlords reject potential renters with accounts in debt collections than for any other reason. Surprisingly, Millennials with negative or insufficient rental histories have better chances at renting apartments than those with charge-offs in their credit histories. This is probably because, when looking through rental applications, landlords are most concerned with finding the tenants who are most likely to pay on time. Unfortunately, those with accounts in debt collections don’t appear as timely payers.

Another finding from the Rent Café study is that there is a connection between low credit scores and rental rejections. Apparently, on average, landlords approve only 48% of Illinois applicants with credit scores below 500. Whereas, landlords offer leasing contracts to 98% of Millennials with credit scores over 750.

Obviously, having accounts in debt collections does significant damage to credit scores. These items also linger on credit reports for up to seven years in Illinois. This is why it is important for Millennials to create and stick to realistic household budgets. Even missing a credit card or loan payment due date by 30 days or more can cause your credit score to drop. Then, when creditors send accounts to debt collection agencies, consumers lose even more credit score points. Of course, there are other ways in which credit scores are damaged in Illinois.

Why Illinois Millennials Should Regularly Check their Credit Reports

A low credit score can make several things in life harder or more expensive. For example, Millennials in Illinois with bad credit may not get approved for loans or credit cards. If approved, they probably face higher interest rates. Illinois residents with bad credit also pay more for car insurance, and as mentioned above, often have trouble renting apartments.

In addition to late payments and accounts in debt collections, other factors can negatively affect credit scores. For instance, Millennials who become victims of identity theft are frequently left with fraudulent accounts on their credit reports that harm their credit scores. Also, mistakes and errors on credit reports can bring down credit scores, and these types of inaccuracies are very common.

The Fair and Accurate Credit Transactions Act (FACTA) entitles all consumers to a free copy of their credit report from each of the major credit bureaus every 12 months. For Millennials who have never checked their credit reports, there is an easy one-stop shop for all three credit reports. Just go to www.annualcreditreport.com and request copies of your credit report from TransUnion, Experian, and Equifax. Once you have access to your credit reports, look them over carefully for unauthorized charges and accounts, and for errors and mistakes.

If you find that anything is wrong with one, two, or all three of your credit reports, call Credit Repair Lawyers of America in Illinois. Our team of experienced credit attorneys will fix your credit for free. Even if you just suspect credit report flaws, contact us, and our credit pros will go over them with you.

The Free and Legal Way to Get Better Credit

Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (773) 360-0665 or sending him a message through our contact page.