When you decide to rent an apartment, you inevitably have to go through a long and complicated process. Not only do you have to fill out rental applications, provide security deposits, and sign contracts, but you may also have to go through a credit check. If you have bad credit, going through a credit check may make you a little nervous — but not to worry. Read on for a few tips on how to successfully rent an apartment even with bad credit.
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Be aware of what credit score you may need to rent the apartment.
When you are thinking about renting an apartment, the landlord will look at your credit score to determine your ability to pay your bills on time and figure out how much of a risk you might be. A higher credit score indicates lower risk and vice versa. As a starting point, a FICO score of 620 is considered fair credit. So before you do anything else, go check your credit score to see where you fall.
Be upfront and honest.
Before the landlord has the chance to bring it up, take initiative to explain that you made some poor financial decisions in the past and that you are willing to take steps to fix them. Being honest and upfront with the landlord will show that you are being truthful, which definitely works more in your favor than trying to hide your financial history and can help position you to be someone the landlord can trust.
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Find a landlord instead of a rental agency.
Not all landlords check credit ratings and may primarily rely instead on a rental application and references, which can be good news for you. And even if they do check credit ratings, there is a chance that they will be lenient with the rules if you are honest with them about your bad credit, as mentioned above. As a result, going with an individual landlord is likely to make the apartment rental process a bit easier for you compared to going with a rental agency, which almost always requires a credit check.
If you’re specifically looking for a landlord who won’t do a credit check, there are a few sources you can check out when looking for an apartment, including Craiglist.org, the classified ads section of your local newspaper, local real estate agencies that handle rentals, ApartmentSearch.com, friends who may know someone who is renting an apartment, and “For Rent” signs posted in windows and yards throughout your neighborhood.
Provide strong references.
Even if you have bad credit, an excellent rental history can work wonders for you. You can use your rental history to your advantage to rent a new apartment if you previously made consistent and timely rental payments, were considerate of your neighbors and kept your last place in great condition. Even if this is your first time renting an apartment, you can still use references from other places — like previous and current employers, teachers/professors, and any other non-relative adults who are willing to vouch for your reliability.
Show that you’re now making a good income.
It’s possible that the landlord will overlook your bad credit score if you can prove that you currently have a good salary. Generally, a good annual salary is at least 40 times your monthly rent — for example, a monthly rent of $1200 would require an annual salary of $48,000 at a minimum. The landlord may ask you to provide several months of pay stubs in order to prove your current salary. So, if you feel that you’re bringing in good income, don’t hesitate to use that fact to your advantage.
Pay more upfront.
Most of the time, the landlord will require you to pay a security deposit and the first month’s rent upfront if you want to secure the property. You can go above and beyond to leave a great impression on the landlord by offering to pay two or more months’ rent in advance or even paying a larger security deposit. Doing so will give your landlord peace of mind, as they won’t have to worry about you making the first few months of rent, and they’ll have a solid reason to trust you and your finances.
While the process of renting a new apartment can be daunting, especially if you’re worried about your poor credit history, there are ways to get around these various obstacles and find a great apartment. Make sure that you take the process seriously and do what you can to gain the landlord’s trust, and you should be good to go.
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