Getting approved for renting apartments or other housing is a good reason to watch your credit score. Everyone knows that in the Twin Cities Metro, there is a housing shortage, so Landlords have become more picky about which tenants they will work with. The Minneapolis City Council recently decided to change its laws on tenant screening to help out prospective tenants.
Want to read the ordinance for yourself? It is linked here.
WHAT CHANGED?
Essentially, it says that landlords in the city of Minneapolis may not use credit score as a basis for denying a rental application unless they conduct an individualized assessment of the rental applicant that takes into account all aspects of the applicant. Other important aspects are whether the applicant has paid the rent without problems in the past, and any other information that the applicant wants to share.
Minneapolis landlords must also stop screening based on certain types of criminal conduct and juvenile convictions. The city of Minneapolis is at the forefront of changing housing trends, so we will be watching how this new ordinance develops.
WHY BANKRUPTCY IMPROVES FINANCIAL STABILITY AND THEREFORE CREDIT SCORE
As you may know from reading other parts of our website, Bankruptcy tends to IMPROVE credit scores because it makes the negative reporting from debt and collections stop completely. It really only lowers your score for about 1 year. This new city ordinance in Minneapolis will be very helpful to people who are in their first year after filing bankruptcy, and want to rent an apartment or house.
Bankruptcy tends to make people MORE financially stable because it gets rid of debt and judgments, but leaves people with all of the same good things in their financial life. For example, you still have the same job or income after filing, and you still have your car, house, and retirement savings after filing. After bankruptcy, a person can no longer be garnished or sued for charged off debt by debt collectors. Smart landlords are usually ok with a bankruptcy, and prefer it to having lots of debt. The new Minneapolis ordinance is just one more reason why people should feel safe filing bankruptcy.
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