How To Get An Apartment With Bad Credit

How To Get An Apartment With Bad Credit?

When it comes to looking for an apartment for rent with your bad credit, you might feel a little stressed out for bad credit can affect the rental process in a major way. In fact, you may even be denied the rental of a specific apartment due to your poor credit score – even with perfect rental history and reasonable salary. If you’re dealing with bad credit and are afraid that the latter will prevent you from obtaining the apartment you desire, then keep reading – you have options! If you’re in need of a little extra money in order to sign your lease, an installment loan online for bad credit may be a good option for you.


7 Tips for Renting an Apartment with a Bad Credit

So, you’re attempting to rent your ideal apartment with a low credit score? Here are 7 top tips to help you succeed:


1. A Recommendation Letter

Your first step in obtaining the apartment you want is presenting your potential landlord with recommendation letters. Such a letter can come from several sources, including previous landlords, roommates or even your bank establishment. The objective here is to demonstrate that you are responsible and fully capable of paying your bills on time. Furthermore, your employer can write a letter informing your potential landlord of your stable revenue.

As a first step, this helps demonstrate to your potential landlord that you’re serious about renting responsibly. More so, not only are you easing your landlord’s mind, arriving prepared for your apartment appointment will increase your chances of creating a responsible impression.


2. Don’t Lie about your Credit Score

It’s important to be completely honest with your potential landlord. There are many reasons as to why you may have a bad credit – and you should take the time to explain the latter. Perhaps you made a poor financial decision previously, your credit utilization may appear very high or there might even be a mistake amongst your report! A landlord’s rules and requirements are not necessarily set in stone, as long as you can explain your situation and provide the supporting proof. Keep in mind that generally, this tactic works best when dealing one-on-one with an individual landlord rather than trying to rent with a large management company.


3. Paying Upfront can go a Long Way!

As you probably already know, having a low credit score presents potential risk to any provider – landlords included. In the case of renting an apartment with a bad credit rating, it is possible that you be requested to pay a security deposit.

You can also consider signing a month-to-month agreement or a three-to-six month lease. If you have a poor credit score, your potential may feel comfortable knowing that they “have an easy way out” in the case that you don’t pay as agreed. Requesting a 12-month lease can be done later on, once a relationship has been established with your landlord.

In certain cases, it may be possible that you be requested to pay a higher per-month fee. In all such scenarios though, paying a little more can go a long way – let’s face it, you just may be signing your dream lease!


4. Rely on a Co-Signer

You can always can always call on a little back up if all else fails: a co-signer. The important thing here is finding someone who has a good credit score and who is, of course, willing to take responsibility in the case you struggle paying for rent. By having a co-signer, your potential landlord may feel there is less risk in signing a lease with you.


5. Discuss Automatic Payments

Insider tip: Landlords adore receiving rent payments automatically. You can offer your potential landlord to set-up automatic payments for the first of the month when it comes to rent. In other words, your landlord’s bank automatically deducts a specific amount from your bank every month. This can usually be completed online, however, you can equally offer post-dated checks for the duration of your lease.

If you’re choosing this route, keep in mind that demonstrating a responsible payment track record is very important. If you’ve had many difficulties paying on time in the past, you landlord may remain reluctant in signing a lease with you. However, if you come prepared with proof of a steady income, you’re definitely increasing your chances.


6. Have a Savings Account

Now, at first glance, this may seem unrelated, however having both a checkings and a savings account is actually very important. When it comes to dealing with a low credit score, having a big salary doesn’t always cut it. Being capable of proving to your potential landlord that you have money set aside is a huge plus and can really set your landlord at ease, seeing you as less of a risk. If you don’t already have a savings account, it’s a good idea to start building one as soon as possible – and to keep building it long term!


7. Search for an Apartment without a Credit Check

One of the easiest and simplest ways to sign a lease with a landlord when facing a poor credit score is to search for an apartment landlord that doesn’t perform a credit check. If this is what you’re looking for, aim for apartments owned by individual renters. Such landlords have less of a tendency of performing credit verifications and usually more willing to take a risk in order to fill their apartment complex. On the other hand, large management companies are generally harder to deal with and performing a credit verification is much more standard.