Locating an apartment is stressful enough without having to tackle credit issues. Landlords frequently opt to acquire your credit report as a means of assessing the probability that you will issue timely rent payments.
Bad credit could frustrate you or worse, leave you homeless if you don’t know how to tackle the situation. Different landlords differ in their credit requirements.
While some might reject your application if your credit is blotchy in spite of a sizable income and a clean rental history, others only check to see whether you’ve faced eviction previously.
If you’re concerned that a poor credit history will prevent you from finding a rental, check out these options.
Bigger Deposit
If you want to demonstrate that you will not skip out on rent, you can offer a larger deposit. A larger deposit could sway some proprietors because it provides financial security.
If you can offer a few month’s rent upfront, the landlord may overlook your poor credit. However, some states cap maximum deposits, so identify your rights before agreeing.
Co-Signer
Although you may have poor credit, you may seek assistance from a family member or friend with good credit. In this case, a cosigner accepts responsibility for your lease terms in case you default.
Bear in mind that if you skip out on payments or face eviction for whatever reason, the landlord has legal grounds to sue the co-signer for the lease’s value. Therefore, discuss with your prospective co-signer and inform him or her before he or she signs your lease.
Steady, Verifiable Income
Your income could offset your poor credit history. First, you must make about 3-4 times the rent to ensure you can afford it. Additionally, you require proof of your revenue. For proof, you could issue an employer’s letter, current paycheck stubs, or latest tax returns.
Recommendations
Securing references from individuals with whom you have had a financial relationship-former landlords, previous/current employers or bank. You are more likely to face rejection if you have unpaid balances that are overdue, particularly to utility companies or other landlords.
Be cautious about the circumstances in which you use recommendation letters. If a landlord has not examined your credit and is unaware of your credit history, unnecessary suspicion may arise when you issue a letter explaining your former financial problems.
Independent Owners
Independent property owners may be more willing to accommodate your situation and consider your explanations. Management companies typically have a set of guidelines that they abide for application approvals. Furthermore, independent landlords may be eager to work with you on a case-basis.
Know Your Credit Report
It is important you check your report before you begin your apartment hunt. You should review your report periodically to ensure the removal of any errors.
No Credit-Check Rental
The best way to find a rental with bad credit is locate a landlord who doesn’t perform a credit check as part of the process. Typically, huge management companies own apartment complexes. These companies need a credit check on every application, and are likely to reject your application.
Credit Improvement
Even if you locate an apartment with poor credit, you must begin working to enhance your credit immediately. Make timely payments and decrease your debt. You should also monitor your reports, which you can obtain freely from the major bureaus annually.
If you are wondering how to find a rental with bad credit, contact Apartment Agents or leave other suggestions.
Image: Renting with Bad Credit
