Direct Deposits and Holidays

Q: Are direct deposit payroll disbursements effected by holidays?

Yes, bank holidays may disrupt direct deposit payments but employers generally process pay roll a day earlier to avoid direct deposit inconveniences for the employee.

Five Parts to Your FICO Credit Scores

Q: Where does my credit score come from?

In order to make sure your credit score is as high as it can be, you need to understand how it is calculated. Drawing from the financial history contained in your credit report, credit scores are based on the FICO method of score analysis and calculated by the Experian, TransUnion, and Equifax, the three credit reporting agencies in the U.S.

Can you improve your credit score? Absolutely. Even if you’re struggling with a less than perfect credit history and a low credit score, you can take the financial steps necessary to raise your credit rating. But before you can begin, you’ll need to know what five areas from your credit report impact your credit score. Here are the basics about each score component:

1. Your payment history – about 35% of a FICO score
Have you paid your credit accounts on time? Late payments, bankruptcies, and other negative items can hurt your credit score. But a solid record of on-time payments helps your score.

2. How much you owe – about 30% of a FICO score
FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much of your available credit you are using. The more you owe compared to your credit limit, the lower your score will be.

3. Length of your credit history – about 15% of a FICO score
A longer credit history will increase your score. However, you can get a high score with a short credit history if the rest of your credit report shows responsible credit management.

4. New credit – about 10% of a FICO score

If you have recently applied for or opened new credit accounts, your credit score will weigh this fact against the rest of your credit history. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. If you need a loan, do your rate shopping within a focused period of time, such as 30 days, to avoid lowering your FICO score.

5. Other factors – about 10% of a FICO score

Several minor factors also can influence your score. For example, having a mix of credit types on your credit report – credit cards, installment loans such as a mortgage or auto loan, and personal lines of credit – is normal for people with longer credit histories and can add slightly to their scores.

When it comes to rent, look for communities that offer e-payment options to reduce payment risk and increase your rentals odds. Ask about payroll direct deposit for rent.

Source: Components of a FICO Score

Increase your low credit rentals odds– Neighborhood Pay Services

Q: How to increasing your rental odds?

When it comes to renting a home with bad credit, there are factors that can be in your favor. Landlords who have multiple properties may be better able to take on the risk of a less-creditworthy applicant than those who have one rental unit and are depending on that rental income to pay the mortgage, Blakeslee says.

A rental home that’s been vacant for a long time may also have less-stringent requirements if the owner is trying to find a tenant.

And as Mark Twain said, honesty is the best policy — when there’s money in it. An explanation of why your credit has taken a hit can give a landlord insight into whether you’re financially irresponsible or have run into a string of bad luck.

A letter from a former landlord can show “your track record for paying rent on time, your respect for both the property and the neighborhood and the length of time that you resided at each property,” Abkemeier says.

Other helpful factors that might land you a lease are: rent assurance through direct payroll deposit, or ACH.

An offer to pay a larger security deposit can go a long way too, though some states limit the amount a landlord can collect. If you can afford to pay a few months’ rent in advance, “landlords may feel safer that you are financially secure and that there is less risk of breaking the lease,” Abkemeier says.

If you’ve tried all of those options and still come up empty, consider getting a roommate or moving in with friends or family temporarily while you can save money to pay a few months’ rent in advance or improve your credit score.

Although it might take you longer to find a home to rent if you have bad credit, you have a lot of control over the situation as long as you can show why you aren’t as risky a proposition as your credit suggests.

“Landlords are in the business of filling vacancies and will most likely consider options that help reduce the risk that there is going to be a problem collecting rent,” Drost says.

Source: Rent Apartment with bad credit score.

Bad Credit Rentals

Q: How can I rent without perfect credit?

Landlords and apartment complexes are among the many businesses that check your credit. Bad credit can result in more upfront expenses in the form of higher interest or security deposits. Different landlords have different credit requirement standards.  If you have a mediocre credit score, some landlords might deny your rental application regardless of previous rental history or gross salary.

If you’re worried that your bad credit history will keep you from finding a place to live, there are ways around the problem. You may want to consider asking about electronic payment options as a condition. Using ACH from your bank account or payroll direct deposit from your employer shows the property that you are able to and willing to pay for rent on time.

Credit Cards Build Credit

Q :  What credit card is better for my credit score?

Credit cards that are backed by banking institutions or credit unions have a higher impact on your credit score then retail credit cards. “If you have one revolving account on your credit report, you can have a very good score if that revolving account is a retail card. But all things being equal, you can have a better score with a bank card,” says Barry Paperno, consumer operations manager for FICO, the firm that developed the most widely used credit score. However, don’t’ give up on your retail card as factors like on-time payments and low-revolving debt improve your score big time.

Upfront Deposit

Q: Do you need first months rent AND security deposit when you get a new apartment? Upfront?

First, upfront requirements may vary by state. What works in Massachusetts may be very different in Texas. Landlords usually require first month’s rent and a secure deposit, but in some states such as Massachusetts, landlords often require first and last months’ rent.

Second, landlords have full discretion in settings security deposits requirements. They key is that under Fair Housing laws those requirements have to be consistent for all applicants. That means two different people should get the same offer if their credit scores are equal. If your credit score falls below standard requirements, your move-in costs will be higher because landlords want to know they’ll get paid. (A lower score indicates outstanding debt or missed payments.)

You may want to consider asking about electronic payment options as a condition to reduce upfront cash costs. Using ACH or payroll direct deposit to pay your rent shows the property you want to pay in time and are willing to take steps to help them and you. Use this website as a resource for rental communities across the country that will work with you even if your credit has been hurt.

Credit Report

Q: Who can see my credit report?

There are five groups of people who can see your credit report. (1) Potential lenders can access your credit report when you make an application to them for credit.  (2-3) Potential landlords and  employers can both check your credit report before approving you for housing rental and confirming your employment respectively.(4) Insurance companies also check the credit report in order to measure the financial ability of a person. (5) Debt collection agencies can view your credit report to gain access to information that will help them recover a debt from you such as your address and employer information.