I’m not sure how all of you started out on your adult financial path, but mine was a bit rocky. It’s not that I was bad with money–quite the contrary. I didn’t own a credit card until I was about 23 years old, which meant that everything went on debit, so I managed my expenses carefully and wisely. However, the whole not-having-a-credit-card thing actually worked against me because when I went to rent an apartment, I didn’t even have enough credit to sign a lease on my own. The management company allowed my mom to co-sign for me, but c’mon– no self-respecting 23-year-old who moved out when they were 18 wants to have to lean on their mommy and daddy guarantors. That’s probably why this Fox Business article really struck me, because I’ve sort of been there. Granted, I didn’t have bad credit, but I sure didn’t have enough of it which in some ways is even worse. So if you, your friends, family members or kids are in a similar situation, send them to read Donna Fuscaldo’s great article about how to rent a place despite having bad credit:
“Good credit isn’t just a necessity for homeowners. Many landlords and rental management companies also require sufficient credit scores from tenants before allowing them to move in.
“When renting an apartment it’s the same as when you are trying to purchase a car or a home. A property manager and landlord will check your credit,” says Chris Brown, vice president of products at Apartments.com.”
Click here to read Fuscaldo’s recommendations for how to get around having bad credit to get considered to rent a place.
Let me say it again guys: having no credit can be just as bad as having bad credit. Even if none of you reading this are in this situation, I’m sure some of you have family members, cousins or even kids who might be. As a young adult, I simply had no clue about the big bad world of credit because my parents never taught me about it. Teach your kids about it, help them to stand on their own two feet financially and I guarantee you (and then them, later,) will thank me for it.