How to Rent an Apartment When You Have Bad Credit

Rent an Apartment When You Have Bad Credit

A bad credit score can come back to haunt you. Here’s how to rent with a less-than-ideal score.

We weren’t all born with good credit. A credible score takes time and patience to achieve. If you have no credit, or worse, bad credit, you may find that you face many hurdles. Credit reports are looked at often. From buying a car to buying auto insurance, financial institutions can look at your report to determine how reliable you are to pay payments on time. When it comes time to rent an apartment with bad credit, you may struggle to find a place that accepts you. However, there are some ways around it by improving your reliability and boosting your score!

Find a guarantor.

This is simultaneously the easiest and long-winded approach. Ask a parent, trusted friend, or relative with good credit to co-sign the rental application with you. This provides the landlord extra reassurance that someone with a good credit history is helping you out. So that you don’t put him or her in a tricky financial position ensure that you can pay the monthly payments without asking them for help!

Increase the security deposit.

Bad credit makes landlords nervous because it indicates that you have little experience paying bills or that you’ve previously defaulted on a loan. If possible, offer the landlord a larger security deposit as a sign of good faith that you can pay monthly rent.

Find a roommate.

If you’re willing to share the space, find a roommate to split the costs with. If the landlord only allows one person on the lease, ask if your roommate is willing to sign it solo. This way, the person on the lease is the one with the better credit score.

Show proof of income.

The best way to ease landlord concerns about credit is to provide them proof of your regular and consistent income. When applying for an apartment with bad credit, have recent pay stubs, tax returns, and a letter of employment on hand.

Work to perfect your score.

Bettering your credit score takes some time, patience, and organization. Aim to always pay credit card bills on time, respond to collection agency phone calls immediately, and don’t close an account that’s in good standing. Bettering your credit score over time will eventually help you to apply for that next apartment or home loan!

To make the most of your finances, work to protect them. The team at American Premier Insurance can help you to choose the right policies for your needs, including renter’s insurance. Visit us today in Phoenix, Arizona to get started!