When planning a move to another city or just a new apartment, we often pay attention to its design and location. Of course, an important point is the price and how comfortable the conditions will be. However, behind all this, one can easily miss the point that renting an apartment is primarily a financial process. Unlike a bank loan, here you do not get a sum of money but a living space. And it can be challenging to rent the desired housing, especially if you had problems in the past that were reflected in your credit history. Most likely, at this moment, you have a question: how can I get an apartment with bad credit?
Renting an apartment with bad credit can be challenging, but it is possible. We’ll give you some helpful tips on improving your credit score or getting the home you want with the one you already have.
What is a Credit Score
A credit score is a numerical score based on your credit history. It assesses the current credit history state and discusses the likelihood of obtaining a new loan in the future.
Previously, we have already compared renting a home with obtaining a loan, which is similar. However, you must have a good or excellent credit score to rent an apartment. Renting an apartment with a bad credit score will be more difficult, and conditions may be less favorable.
Your credit score is formed from your credit and payment history: the number of active loans, timely payments, and your ability to manage borrowed money.
We are all surrounded by credit products: credit cards, mortgages, and small loans. However, not all of them affect our credit score. To know for sure, you need to check directly with the lender or lending company.
For example, if you decide to borrow 500 dollars and you need to do it quickly, most likely, you will contact the appropriate service that will be able to match you with a direct lender. In most cases, this kind of 500 dollar loan will not affect your credit history. This is a fast loan that you can get even with bad credit. Lenders, in this case, do not conduct hard credit checks and therefore do not send reports to the three main credit bureaus. And although this is the same financial product, it will not affect your credit score.
How to Check Your Credit Score
First of all, knowing your credit scores is really important. Knowing your credit score, you know exactly what conditions you can qualify for. And also, you will be able to take timely measures to improve it if you are planning a large loan, for example. There are several different ways to find out.
You can get a free copy of your credit report once per year from the three major credit bureaus at Annualcreditreport.com.
It is very important to pay attention to whether errors are made in the report. And if there are any – contact them for their correction.
Banks, credit unions, and some lenders also request your credit report if you apply for a loan.
What Credit Score do You Need to Rent an Apartment
This is not to say that there is some kind of unified credit score required to rent a home. However, it’s no secret that landlords prefer to rent out properties to those who have a good or excellent credit score. These are values in the range of 700 and above. Therefore, it is so important to know your credit score and understand what to apply for.
However, if your credit score is below this level and you need to rent an apartment with a bad credit score, we will give you some tips on how to do it.
Tips on How to Rent an Apartment With Bad Credit
Bad credit is not a death sentence. Credit history is formed for a long time, and some of our mistakes can remain in it for up to seven years. Your financial situation stayed the same during this time?
However, if the credit level is still not in the best condition and you want to conclude a lease, try these tips:
Your landlord is a living person. Regardless of whether you rent from a private landlord or apply to a company, the final decision will still be for living people. And it will be much better for you if you immediately indicate your low credit score and even mention what exactly led to its deterioration rather than hiding it. The landlord will check it out anyway and find out one way or another, but you can earn a few trust points if you don’t hide anything from the start. This is especially true for private landlords when the personal factor works. Your sincerity can play into your hands.
If the negative impact on your credit history has remained only in credit reports, and you have recently managed to establish yourself as a good employee or tenant, a letter of recommendation can be your salvation.
If your boss, a university professor, or previous landlord with whom you stayed on good terms agrees to write a few nice lines about you, you can demonstrate them as an argument for a new landlord.
Opinion about you from respected people means a lot. The more letters you can collect, the better. Let them write about your reliability and that you are trustworthy. About the fact that you are punctual and clean, how responsibly you treat money. A good credit score and good credit history mean a lot, but any landlord wants to have a good person in their apartment in the first place.
In some cases, demonstrating your ability to pay rent can help. For example, you may have bad credit because of problems in the past, or you may not have credit scores because you are young or moved from another country. This does not mean that you have nothing to pay rent with or that you had problems with payment in the past.
In this case, your monthly income certificate will help you. You can also demonstrate to a potential employer that you regularly pay your rent on time in the area where you currently live and also that you are not late in paying utility bills and any other. Having money and knowing how to manage it will be a significant factor in this case.
Another good way to prove the seriousness of your intentions is to make a larger deposit. You can offer a larger security deposit or pay several months in advance.
In this way, you will prove both your ability to pay rent and your intention to stay in one place for a long period. In this way, your landlord will also be safe from the fact that you live for a couple of months and move out without paying.
Another good way to rent an apartment with bad credit is to find a guarantor. A guarantor or co-signer can be a family member or close friend who has a high credit score and is willing to lend a helping hand. If you do not have such a person in mind, there are a lot of agencies and companies that, for a fee, can act as a guarantor for you.
However, you should keep in mind that in the event that you have problems with payment, this debt will be reflected not only in your credit account but also in the account of the guarantor. Therefore, we recommend using this option if you are absolutely sure that you will be able to pay the rent on time for all the time stipulated in the rental agreement.
When we hear the word roommate, many of us imagine college dorms and youth. However, statistics show that one in three Americans lives with a roommate. Moreover, half of them become friends with their roommate and continue to communicate for many years even after they have changed housing.
Living together with someone can seem daunting, but with the right approach and mutual respect, living together has more pros than cons. Besides the fact that having a roommate with a good credit score will make you more likely to rent an apartment, it also has domestic advantages.
- You will never be bored;
- You can save on the purchase of products and cleaning or hygiene products;
- You can also split utility bills and even share household chores.
Of course, cohabitation is not for everyone, but consider this option among others.
Finding an apartment that accepts bad credit and does not conduct credit check may not be easy at first glance. They often advertise more expensive apartments available to those with high credit scores. However, you can try turning your attention to private landlords. In this case, the requirements will often be much less than if you look for apartments through an agency.
First of all, private landlords themselves are interested in finding a good tenant. In addition, many private landlords do not conduct credit checks at all. It is enough for them to talk to you and understand how much you are able to pay. And even if you have a low credit score, you can always personally explain your situation and prove your ability to pay.
How to Raise Your Credit Score
In the event that the options listed above do not suit you, or you are just considering options, and you still have time, you can try to increase your credit score.
This is not the fastest process, as credit reports are sent only once a month or even less often, and not all utility payments are taken into account by bureaus. However, paying your bills on time, staying out of debt, and managing your credit funds and credit card debt properly will help you improve your credit score and qualify for better terms. To keep a close eye on your credit health, check your credit report regularly for errors whenever possible.
You Can Get an Apartment With a Bad Credit Score
We hope that after reading the article, you already know exactly how you can get an apartment with bad credit. We have listed many options for you that can help you get bad credit apartments.
Be honest, provide letters of recommendation, and find a sponsor or roommate. If these options are not suitable, try to deliberately look for a landlord who has apartments for rent with bad credit. Often these will be private landlords to whom you can personally describe your financial situation and inspire a sufficient level of confidence or demonstrate proof of solvency.
We wish you success in finding suitable housing, as well as financial stability and an increase in your credit score. And then you don’t have to google “how can I get an apartment with bad credit” anymore.
FAQ: How to Get an Apartment With Bad Credit
How to get an apartment with bad credit?
Still not sure how to get an apartment with bad credit? Prove your ability to pay, find a guarantor, or offer to pay months in advance. You can provide letters of recommendation as well as employment verification letters from work. Another good option would be to find a private landlord who won’t do a credit check.
What credit score is needed to rent an apartment?
In fact, you can rent an apartment with any credit score. Low credit score, poor credit score, bad credit score, or no credit score at all. However, most landlords are still looking for people with a high credit score of over 701.
Can I reapply for an apartment if I get denied because of bad credit?
Yes. Your bad credit cannot cause you to be blocked or blacklisted. Most apartment complexes can even provide you with the criteria you need to meet in order to rent a property upon request. Or a tip on exactly how to improve your credit scores to conclude a lease.
