Your credit score will be a major decision factor when you want to rent an apartment. Landlords or apartment complex managers always check applicants’ credit to make sure they can count on them to pay rent. So where does that leave you if you have poor credit? It leaves those individuals in a challenging spot. However, if you’re in this situation don’t lose hope. With the right strategy, you can still secure an apartment. Read this article to find out how to rent an apartment with bad credit.
Watch the Full Video Guide – How to Rent an Apartment with Bad Credit
First, Assess Your Credit
First, check your credit reports from Equifax, Experian, and TransUnion to know your credit standing. You can get your reports from all three agencies from annualcreditreport.com. You can also use the Cambio app to check your credit score for free. This shows you what landlords will see.
Review all of your history, including accounts, credit inquiries, payment history, credit utilization, and late payments or other things that impact your total score. It’s key to be aware of your full credit picture so you can explain any credit issues to landlords when applying for an apartment.
Dispute Credit Report Errors
Now it’s time to get down to repairing your credit report to bring your score up. Review every item on your report and check for errors.
Errors like incorrect balances or ownership of accounts can seriously knock your score down. If you spot mistakes on your credit reports, file disputes immediately with all three credit agencies. Send in evidence you have, like old statements, to prove your case and get errors removed.
You can use this free dispute letter template to dispute items on our report that are inaccurate.
The sooner you remove errors, the sooner you can improve your credit standing. Higher scores mean you are a lower risk to landlords.
Be Honest About Credit Problems
During your apartment search, don’t try hiding negative credit information from landlords. Instead, bring up that you have had credit challenges, and be open with leasing agents and landlords. Explain the context of your past credit issues, and if there are special circumstances that caused credit problems, mention those. Demonstrate you understand where your credit went wrong. Also talk about steps you are taking to improve it. Landlords value honest communication regarding your finances.
Explore Second Chance Apartments
Second chance apartments are rentals that help individuals who have bad credit history. These help people who don’t qualify for traditional rentals due to financial problems in the past, or a criminal history. Second chance apartments are meant to be a chance for rehabilitation and rebuilding. They are important to help people with past serious financial problems get back on their feet. This kind of housing is important to give those with bad credit problems or serious past issues another chance at re-establishing their life and security.
Where To Find Second Chance Apartments
- If you’d like to find 2nd chance apartments, start with your local housing authority in your city. They often link people with these programs in your city, so they can give you resources in your area.
- Some websites offer second chance apartments among their rentals list. Check out Zillow, rent.com and Apartmentfinder.com.
- Your city has social service agencies and local non profit organizations who often know where to find second chance housing. Contact your local city council person to find out how to connect with these.
- Friends and family: If friends, family and co-workers know you’re seeking a rental, they may know of second chance housing opportunities.
Look For Privately Owned Apartments
Another option is to seek out a privately owned apartment with no credit check. There are some landlords who privately own and manage rental residences, who do not require a credit check to live there. This may be an individual with another home on their own property, or people who have smaller second homes that they would like to have occupied. Again, let friends and family know what you’re looking for and you may find someone in your network who has a property for lease and would be willing to work with you without a credit check.
Offer To Have a Co-Signer
One strategy is to ask a family member or friend with good credit to co-sign your apartment lease. This means they are legally responsible for rent if you default. This gives landlords security that if you are late on payments or can’t pay, they will still receive rent. Not everyone is willing to co-sign a lease, so give serious consideration to the person you ask to do this. Remember they are responsible if you fall through so make sure you are truly ready to take on the lease yourself so they don’t have to.
Provide Other Proof That You Are Responsible
If your credit history is tarnished, bring in other documentation that proves you are a reliable individual. Provide landlord references from the past showing a solid history of on-time rental payments. You might also offer pay stubs to show you have regular income or supply a letter of reference from someone who you have had a loan with, like a local bank, that you have paid on time.
You can also show utility bills, insurance payments, or other recurring expenses paid on schedule. This extra proof counters negative marks on your credit.
Offer A Larger Deposit And Security Payment
If you have some savings, offer a larger move-in deposit or a few months’ advance rent. For many landlords, this is enough to offset bad credit. Willingness to pay more upfront shows you’re financially committed. And landlords may accept slightly higher risk for a larger payout, especially if you have a steady job.
Bad Credit Doesn’t Have To Stand In Your Way
Use these strategies when your credit is not the best, and you can succeed in the apartment rental market. Understand where your credit stands, address and correct errors, communicate with landlords honestly, and provide financial incentives, like a bigger up front payment. With a lot of persistence, you can clear the hurdles of past credit mistakes, and be approved to rent an apartment.