Renting an Apartment When Your Credit Is Bad
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Renting an Apartment When Your Credit Is Bad
Many landlords, especially corporations running large apartment complexes, do credit checks on renters and will refuse those with bad credit. This is true even if the renters have sufficient income and a spotless rental history. What can you do if you have bad credit and you need a place to rent? Here are some options.
Things To Know
- If your credit is bad, you have some options open to you.
- Putting down a bigger security deposit can help if your credit is bad.
- A cosigner can help if your credit is bad.
Go with an individual landlord
Look for individually-owned, smaller apartments or homes. Many individuals who own apartments or homes don’t look at credit. They may be more interested in your references from past landlords. There is also the option of staying with friends and family.
Be honest
If you are unable to find a landlord who doesn’t check your credit, then you may need to talk with potential landlords. Sometimes the right sob story helps. Divorce, job loss, and other such events can lead to bad credit. Explain your situation to landlords and detail how you have cleaned up your finances and how you will handle the rent. Remember one thing: don’t give such an explanation unless you’re sure that the landlord even does credit checks in the first place.
Get help from someone else
You might get a cosigner—a person with good credit who agrees to guarantee your rent. The cosigner is on the hook for any rent you don’t pay, which makes the landlord more willing to rent to you. Friends and family members are popular choices as cosigners, but remember that this can strain relationships now and in the future.
Use a bigger security deposit
Another option: pay a larger security deposit up front in order to cover your risk of default and eviction. The larger the deposit, the more vigilant you will be about getting it back. Many states regulate how much of a security deposit a landlord can demand, so you could try to offer something above this limit.
Above all, work on your credit
Of course, work on getting your credit back in shape, because you will eventually need it for other things. Get your credit report and find out exactly what is dragging you down. Not all things affect your rentability easily. Pay any past due balances, especially to previous landlords. Being on the path to better credit is itself a positive sign, which can sway some landlords.