Categories: Real Estate

Renting an Apartment or Home with Bad Credit

Although your credit score and credit report are important when attempting to rent an apartment or home, they are not the end-all, be-all of decisions. There are other factors that will play into your prospective landlord’s renting decision, and if you play to other strengths in your financial or personal history, you can still find ways to rent an apartment or home with bad credit.

First of all, you should know exactly how bad your credit really is. Order a credit report from the three major credit bureaus and look them over carefully. Note any discrepancies that you don’t understand, and contact the credit bureaus for confirmation. You should also dispute any delinquencies or overdue accounts that you feel have been made in error.

Next, ask each of the credit bureaus to make notations in your credit report of any debts you are currently repaying or arrangements you have made with creditors. You are also legally entitled to write a letter of explanation for any and all credit problems you have had in the past. This way, when prospective landlords run your credit check, they will find explanations as well as problems with your credit.

The next thing to do is to be proactive. You don’t want to not mention your credit history and hope that the landlord won’t run a credit check – they will! Instead, inform them in advance of problems with your credit history before trying to rent an apartment or home with bad credit. Let them know that you are doing everything in your power to rectify all situations, and that you are willing to make compromises in order to find a place to live.

For example, you might offer to increase the amount of your deposit in order to rent an apartment or home with bad credit. This offers the landlord additional security against a default on your part, and will instill a little more confidence in your ability to handle your finances. If possible, you can also find a co-signer or guarantor who can vouch for your ability to pay your rent. In that case, however, if you are unable to pay the rent, your co-signer will be responsible for that payment.

And lastly, do you best to make an excellent impression in order to rent an apartment or home with bad credit. Give the landlord every reason to approve your application. Dress appropriately for all interviews and be polite and respectful. Have all of the necessary documentation in order and profusely express your interest in renting. Provide references of previous landlords and employers who can vouch for your credibility and who can prove that you make enough money to afford rent and utilities.

It may be difficult to rent an apartment or home with bad credit, but everyone has to find a place to live. Save up enough money so that you can afford at least double the amount of the typical deposit and show your ability to manage your finances by providing copies of bank statements.