Question

A client who is a single mother of two young children meets with a housing counselor to create a spending

plan that helps her manage her finances better and improve her credit score. She has been employed at her job for two years. She works 40 hours per week and earns $12 per hour. She does not receive child support and her monthly income barely covers her monthly expenses, so she is unable to save. She has one secured credit card and $5,000 of bad debt, which has been in collection for three years. She also has an
outstanding judgment for $1,800 from a previous landlord when she was evicted three years ago. She has a credit score of 580. Due to her past credit history, she is renting from a private landlord.

Which step should be included in a Client Action Plan to best help this client qualify for rental housing at an apartment complex?

A- Pay off the $1,800 judgment
B- Apply for a new job
C- Pay off the $5,000 bad debt
D- Close the secured credit card

Answer 1

The best step in the Client Action Plan for qualifying for rental housing is to pay off the $1,800 judgment to demonstrate financial responsibility and improve creditworthiness.

Step-by-step explanation:

The step that should be included in a Client Action Plan to best help this client qualify for rental housing at an apartment complex is A- Pay off the $1,800 judgment. This is because outstanding judgments can significantly harm credit scores and are a red flag to potential landlords. Paying this off can demonstrate financial responsibility and significantly increase the client's attractiveness as a tenant. Additionally, once the judgment is satisfied, the client can focus on paying off the $5,000 bad debt in collections and continue to use the secured credit card responsibly to help improve her credit score over time.