Tips On How To Rent An Apartment With Bad Credit

March 27, 2010

Renting an apartment or home can be tough if you’ve bad credit. Most landlords and apartment complexes will check your credit to decide whether or not you are a good candidate to rent to. Different landlords have different credit requirements. Some might deny your rental application if you have imperfect credit, even if you have a spotless rental history and a sizable salary.

If you’re worried that a bad credit history will keep you from finding a place to rent, here are a few tips you can use to find a place to live even with bad credit.

Avoid A Credit Check

The key to getting an apartment when you’ve bad credit is finding a landlord that doesn’t do credit checks.

Start by looking on classified sites such as Craigslist. Many apartment complexes and landlords advertise here and some will also advertise that they don’t do credit checks in order to entice potential renters.

The classified section of your local newspaper (or that of the area you’re interested in moving to) is another place where property owners advertise for rentals. Sunday’s paper usually has the most advertisements.

Many homeowners use real estate agents to rent their homes. Checking with real estate agents in your area might help you find an apartment, townhouse, condo, or home to rent.

As you inquire about an apartment, ask the landlord what criteria is used to approve tenants for the rental. If credit check isn’t one of them, then you’ve one less thing to worry about. However, if there is a credit check involved, you have some additional options for getting approved.

Get Suggested

Getting someone to vouch for your financial responsibility can help lessen the effect of negative entries on your credit report. Contact people with whom you’ve have a financial relationship – previous landlords, your bank and even your current or previous employers.

If you have past due accounts on your credit report, pay them off and get the creditor or lender to write a letter stating the account has been paid in full.

Write your own letter explaining the situation that caused your financial problems to persuade the landlord to rent to you.

Be careful about the situations in which you use letters of recommendation. If a landlord is not aware of your credit history he might become unnecessarily suspicious when you hand him a letter explaining your past financial problems.

Have A Co-Signer

Getting someone to co-sign your lease is another option. But make sure your co-signer has a good credit history as they’ll need to meet the necessary credit qualifications as well.

Keep in mind that if you skip out on your rent or get evicted for any reason, the landlord can legally go after the co-signer for the value of the lease. Use other people’s credit sparingly and be more careful with it than your own.

Pay More For The Lease

Whether you are able to get around the credit check altogether or you get approved for an apartment despite your credit history, anticipate to pay more money upfront. You’ll might be required to pay a higher security deposit or several months of rent to move into your new apartment.

If you don’t have the best credit and will be moving in the near future, begin setting some money aside and begin looking for a new place as early as possible. The sooner you begin looking, the more time you will have to prepare.

Better Credit For The Future

A bad credit history doesn’t mean you’ll not pay your rent on time. Unfortunately, your credit report and score might tell a different story. Although you can work around some credit checks, you often end up paying more than you would have otherwise. That’s why it’s important to take steps to ensure your credit report matches your bill-paying habits.

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