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To get an apartment with bad credit, you'll need to do more than your average applicant. But you can still position yourself as a strong rental candidate by taking certain steps. Before we get to what those steps are, first you need to know what credit score landlords look for and why. What Credit Score Do You Need to Rent an Apartment?Landlords, like banks and creditors, check your credit score to determine your ability to pay your bills on time. A potential landlord will use your credit score to gauge how much of a risk you are: The higher your score, the lower your tenant risk profile, and vice versa. A FICO® Score☉ of 620 is considered fair credit, and is often the starting point for landlords. Property managers and landlords are allowed to run your credit and may deny your
application based on it. Usually, however, your credit score is just a starting point. What may matter more is what's on your credit report, and how you ended up with the credit score you have. Can You Rent an Apartment With Bad Credit?The short answer is yes, you can rent an apartment with bad credit. However, you need to be strategic about how you secure the rental. Here's how to position yourself as the strongest applicant and get your apartment, despite your credit. 1. Pay More UpfrontMost landlords and property managers require a security deposit and the first month's rent upfront to get into a property. If you want to make a good impression, pay two or more months' rent in advance or offer a larger security deposit. This will give your landlord peace of mind while you demonstrate your commitment to restoring your creditworthiness. Paying more in advance will also put you ahead of the rental schedule. Even if you are required to use an extra payment as a deposit upfront, keeping your payments ahead of schedule in excess of any deposits will build trust with the landlord. In some cases it can also be arranged to act as a buffer should you have financial challenges in the future. 2. Find a CosignerIt can be difficult to ask a friend or family member to cosign your lease, but it can help you to get into an apartment. If you have someone who is willing to cosign, make sure they have good credit and a history of timely mortgage or rental payments. Last, make sure your cosigner knows what they are getting into because if you default on a rental agreement, you both will be held accountable for it. Because cosigning presents a risk for the cosigner, make sure that you can financially commit to a rental agreement before you move forward. Failing to honor a commitment after enlisting the help of a cosigner can damage your credit—and your relationship. 3. Bring Documents and ReferencesYour credit score is just one part of the story that makes up your consumer profile. If your score is low, submit with your application documents that tell the rest of the story and demonstrate that you are a credible applicant capable of paying your rent every month. Here's what to bring:
By bringing documents to your interview with the landlord, you can fill in the gaps in your credit report or balance out your profile if your score does not accurately reflect your credit history. 4. Search for Apartments That Don't Require a Credit CheckMost established property owners require a credit check before they'll rent to you. There are, however, landlords who do not require a credit check. These properties often are less desirable, but may show you can be trusted to pay your rent while you're also building your credit. To find a place that doesn't require a credit check, start by looking for apartments on Craigslist, Facebook Marketplace or the local newspaper's classified ads. If you're patient and do a thorough enough search, you should be able to find a place where your credit score isn't part of the evaluation process. 5. Consider a RoommateIf you're trying to rent an apartment with bad credit, a landlord may be more willing to accept your rental application if you share the rent with one or more roommates. Just make sure a landlord pulls your roommate's credit report first. Another option is to move in with someone who already lives in an apartment or property for rent. You may still have to undergo a credit check, but your payments will be lower and your roommate may still assume responsibility for the apartment. You simply pay them, and they pay the landlord. Like having a cosigner, this arrangement will be built on the premise that you'll make all your payments on time. Before entering into a subletting agreement, check your lease agreement to make sure it's allowed. 6. Readjust Your ExpectationsThe apartment you want and the apartment you qualify for may differ. The one you can qualify for may not have a pool, workout room or built-in cable package. It may even be on the less-desirable side of town, or could require a longer commute. By readjusting your expectations and treating this period as a
"rebuilding" experience, you will give yourself time to rebuild your credit. As a bonus, paying less for a smaller space or fewer amenities allows you to keep that extra cash in your pocket. What Do Landlords Look For on a Credit Report?While you're doing all you can to show potential landlords that you are a worthy applicant, you should also be aware of what they are looking at on your credit report. Even if you've used the strategies above and have rented an apartment, it's important to find ways to make your next experience smoother while also building your credit. Knowing what a landlord is looking for on your credit report and why is an important first step.
Your payment history, rental history, debt and bankruptcy status are all important parts of your consumer profile. Landlords and rental companies will weigh all these factors to determine whether a tenant-landlord relationship makes sense. So before you apply, take the necessary measures to improve your credit and thus improve your chances of approval. Here's how to do it. How to Improve Your Credit Score Before Getting an ApartmentIf you're trying to rent an apartment with bad credit and have a few months to spare, concentrate on ways you can improve your credit score. If renting an apartment is your focus, these are the most important steps to follow in the months leading up to applying. Pay all bills on time: Payment history is the most important factor in your credit score, so making all your payments on time every month will help your score improve and show a strong credit history. Creditors and landlords like to see consistent payments over a long time. Pay down your debts: Do you have credit card debt? What about an old student loan? If you have time before you plan to get an apartment, focus on paying down your debt. Reducing your balance by paying down your debt can help raise your score. If you're serious about renting an apartment with bad credit, consider getting a free credit
report from Experian so you can identify your red flags before applying and work to improve your credit for the long term. Can I get an apartment with a 500 credit score?In short, yes! A credit score of 500 is low, but it's not insurmountable. It would be best if you planned some extra time for your apartment hunt with scores this low, but you can still rent an apartment.
How can I get an apartment if my credit is low?Here's how to position yourself as the strongest applicant and get your apartment, despite your credit.. Pay More Upfront. ... . Find a Cosigner. ... . Bring Documents and References. ... . Search for Apartments That Don't Require a Credit Check. ... . Consider a Roommate. ... . Readjust Your Expectations.. How can I rent with bad credit and no guarantor?How to rent with bad credit and no guarantor: What steps to take. Check your credit report.. Clear outstanding debts.. Ask your current/previous landlord for a good reference.. Offer a larger deposit (if possible). Find yourself a housemate.. Review your online presence.. Have an honest conversation upfront.. What is the best site to find cheap apartments?The Best Rental Websites for Apartment Hunters. Apartments.com. ... . PadMapper. ... . Rent Jungle. ... . Abodo. ... . RentCafe. ... . Zumper. ... . Rent.com. ... . Hotpads. Acquired by Zillow in 2012, Hotpads offers users a wide range of search customization in terms of neighborhoods, budgets, and apartment sizes.. |