Whether you have bad credit because you just haven’t been able to build any yet or you have had to deal with some financial issues over the last few years, you know you have a low credit score and you worry about whether anyone will rent to you. The good news is, it is possible to rent an apartment. The process is a little different than it is when you can pass a credit check, so read on to learn more.
Having Bad Credit is Not the End of the World
One thing to check is to make sure your credit report is accurate. You can get a free report every year to review. This gives you the chance to correct any errors and improve your score. Even if you cant get the erroneous entry fixed in time, you can have a reply ready for your potential landlord that explains the issues such as medical bills you are working on paying off, or you can provide proof of submitting the paperwork needed to dispute the error.
If you have some time to work on your credit report before you need to rent on apartment, make sure that you are paying your bills each month on time, and don’t close any accounts even if they aren’t being used. Avoid opening any new accounts, too, until you get your apartment. Some inquiring will even reduce your score when you are applying for a credit card.
A demonstrated ability to pay is also helpful. Being able to show that you have enough income to afford your rent goes a long ways towards getting an apartment. And, even though you might be able to afford a bigger or more expensive place, start with one that is definitely within your budget. When you are renting a new apartment and you already have one, you might be able to get a letter of reference from your current landlord that will give your prospective new landlord insight into how reliable you will be as a tenant.
You might be able to negotiate a shorter lease than usual to demonstrate your ability to be a good tenant, too. This gives your future landlord the ability to renew your lease at the end of that time once they see that you are indeed a good tenant.
Another offer you can make to your future landlord is to move in right away. That eagerness shows you want to be a good tenant, and it also means he or she can start earning rent money right away. Being able to pay right away with a check or a cash payment can secure your space quickly, something that is a definite advantage in a competitive market.
With Bad Credit You Will Need a Larger Deposit
Many landlords will want you to make a larger than usual security deposit or they will ask for first and last month’s rent to ensure that they can recoup their money on their gamble – but you wont make them feel like it’s a gamble, right?
It is trickier to rent an apartment when you don’t have good credit, but it is not impossible. A little work put in before you go searching for a place to live can make the process a lot easier.