For those with major credit problems, renting an apartment may seem like an impossibility. Renters will find that, in many cases, landlords must check their credit score before issuing a lease. If you’re struggling to find a way to rent an apartment despite having bad credit, there are some strategies to increase your chances.
Can You Still Get an Apartment with Bad Credit?
To the relief of many, the answer is yes–you can still get an apartment with bad credit!
If you have bad credit, don’t lose hope. Keep this checklist handy when you begin your apartment search.
Improving Your Ability to Rent an Apartment with Bad Credit
If you’re struggling to rent because of bad credit, don’t worry. Taking the steps below can help improve your chances of getting approved for an apartment despite your credit history.
Step 1: Be Upfront about Your Credit Score
Being honest with potential landlords about your bad credit score allows you to frame the narrative and explain why your credit score will not hinder you from being a great tenant. It is easier for individual landlords than for a large company to be flexible and minimize the role your credit score plays in your consideration as a tenant.
With that in mind, if your credit isn’t the best, you are better off seeking leniency from a single property owner instead of an organization dedicated to managing housing. Some even bypass credit checks altogether, affording you a no credit check option to renting (more on that below).
Step 2: Provide Proof of Income
Showing proof of a steady income and employment stability will demonstrate your ability to afford the rent and assure landlords that you can make timely payments regardless of your credit score.
To do this, you must have paystubs from the past several months to pass along to your potential landlord. Landlords are looking for income that is about three times the cost of your rent, so make sure you have a budget for an apartment you can afford.
Step 3: Offer a Higher Security Deposit and Pay a Few Months’ Rent in Advance
Landlords may be more willing to rent to you if you offer a higher security deposit.
A larger deposit provides them with added financial security in case of any issues during your tenancy. Plus, offering to pay a few months’ rent upfront can alleviate their concerns about your credit score and show your commitment to honoring the lease agreement.
This may reduce the money you have available for other moving experiences, so if you are still in the planning phase, it is best to begin saving money now. Access to money upfront also helps you stand out to the landlord.
Step 4: Make Automatic Payments
Sometimes, overcoming poor credit can be as simple as setting up automatic payments to your landlord. For a landlord, this option removes the hassle of getting renters’ payments and ensures that the money they are owed will reach them on time and in full.
This may be more difficult than the other suggestions because a bad credit score may make some landlords hesitant to trust that a resident can maintain a bank account with a balance sufficient to cover the cost of living. However, by demonstrating consistent income and an adequate bank account balance, you can help the landlord overcome these doubts.
Step 5: Provide a Letter of Recommendation
If you have a positive rental history, provide references from previous landlords to vouch for your reliability as a tenant. You can provide context to your bad credit score with letters of recommendation as well as provide testimonials regarding your personal or professional character. Use this opportunity to tell your landlord what happened to cause your bad credit and, more importantly, discuss the changes you have made to improve your finances.
It’s as simple as asking your previous landlord to write a letter of recommendation to use in future rental applications or consider securing a letter of recommendation from your bank lender or even from former employers.
Additional Actions to Consider if You have Bad Credit
If you’ve taken the steps above to improve your chances of getting approved for an apartment but want to go the extra mile, there are two things to consider.
Get a Co-Signer or Guarantor with Good Credit
Consider asking a family member or friend with a good credit score to co-sign the lease or act as a guarantor. This provides landlords with added assurance regarding rent payments.
Because leases are not reflected on credit scores, co-signing an apartment lease will not damage your co-signer’s credit score like an auto loan would. Still, if you fail to pay your rent, the co-signer is agreeing to pay your rent.
There are specific requirements for joining as a co-signer:
- The co-signer must have good credit to be approved.
- They must prove income.
- They should also prove a history of maintaining a steady income.
For those interested in getting an apartment but who lack proof of income or are younger (like recent college graduates) and need more time to build their credit score, consider getting a co-signer to qualify for apartment rental.
Be Flexible and Communicative
Show flexibility regarding move-in dates, lease terms, or other conditions that landlords may consider. Maintain open communication and address any concerns or questions they may have about your application.
By taking proactive steps, being transparent, and demonstrating your ability to meet your financial obligations, you can increase your chances of renting an apartment even with a low credit score.
Rental Options with No Credit Check
Larger apartment complexes are more likely to require a credit check, so you might want to consider renting from a private owner or renting a room or apartment in a private home. Check local newspapers or even Craig’s List for apartments in smaller buildings, as there is a greater chance that they will be rented out by a single owner who is more likely to rent without checking your credit score.
Finding a private apartment can also be as simple as scoping out an area in person and looking for “For Rent” signs outside available homes. Following up with the homeowner could give you a better understanding of the rental criteria and present the opportunity to rent without requiring a credit check. Sometimes, real estate agents can also assist, as homeowners occasionally hire them to help them rent out their homes.
At the end of the day, honest communication with landlords goes a long way. Be upfront about your credit situation and be willing to provide any additional information or documentation to prove your financial responsibility. Explain any factors contributing to your low credit score and, most importantly, highlight your ongoing efforts to improve it.
Accountability, taking proactive steps to address your credit challenges, and presenting yourself as a reliable tenant can increase your chances of securing an apartment even with a less-than-perfect credit history.
Frequently Asked Questions
Q: How can I rent an apartment with bad credit?
A: While bad credit can make the process of getting approved for an apartment more difficult than if you had good credit, it certainly isn’t impossible. The important things to remember if you have bad credit are proving your employment history and financial responsibility, being honest with your landlord about your credit score, being willing to provide a higher security deposit, providing character and renter references, and, if needed, considering getting a co-signer or guarantor.
Q: Will landlords check my credit score?
A: Many landlords conduct a credit check on new tenants and look for potential warning signs that could cost the landlords money in the long run. The flags landlords look for often include low credit scores, a history of late payments, significant payment gaps, significant debt, and delinquencies or evictions in rental history.
Q: What is the lowest credit score to rent an apartment?
A: The lowest credit score required to rent an apartment can vary depending on the landlord or property management company, the location, and rental market conditions. Generally, a credit score below 600 may be considered low and could pose challenges when renting an apartment. However, some landlords may be more flexible and consider other factors such as income, rental history, employment stability, and references.
Ultimately, the specific credit score requirement for renting an apartment can vary widely, so it’s crucial to inquire directly with landlords or property managers during your apartment search.
Q: Is it possible to rent an apartment without a credit check?
A: Most landlords will conduct a credit check on potential tenants to examine any potential risk factors that may cost them money. For those concerned about credit checks, private rentals might be a better option.
Q: What documents should I provide if I have bad credit and need to prove that I can pay rent on an apartment?
A: We recommend providing your potential landlord with the following documents to prove you can afford to pay rent despite having bad credit:
- Pay stubs
- Bank statements
- W-2 forms
- Rental references
- On-time utility bills
- Additional on-time bills (e.g. phone bill)
- Offer letter if you’ve recently switched to or are about to switch to a new job
- Invoices, contracts, or tax returns if you’re self-employed
Q: Can offering a higher security deposit help me rent an apartment if I have bad credit?
A: Yes, offering a higher security deposit can minimize your landlord’s concerns by proving you’re financially responsible and capable of affording monthly rent. Security deposits provide landlords financial security in the possible event of damages that go beyond normal wear and tear and unpaid rent and/or utilities. If you have a pet, your landlord may require an additional pet deposit to cover damages and cleaning fees.
Q: How does having a co-signer or guarantor affect my apartment application?
A: Having a co-signer or guarantor can improve your chances of being approved for an apartment if you have bad credit.
Q: What are rental references, and how can they help me get an apartment if I have bad credit?
A: Rental references can range from a letter of recommendation from your previous landlord to letters of recommendation from bank lenders or employers. They demonstrate your reliability as a tenant or employee and financial responsibility, and providing them can alleviate concerns landlords may have if you have bad credit.
Q: Are there specific apartment complexes that are more likely to rent to people with bad credit?
A: Although there aren’t specific apartment complexes or management companies that cater to people with bad credit, smaller buildings and private rentals are more likely to be flexible if you have bad credit than larger apartment complexes that have stricter policies.
Q: Can I rent an apartment if I have a history of late payments or evictions?
A: Having a history of late payments or evictions can make it harder for you to rent an apartment, but there are steps you can take to improve your chances. Landlords are always looking for ways to minimize risk to their investments, so proving your reliability as a tenant and your financial responsibility is important. Honesty about your credit score and flexibility go a long way, and offering to pay a higher security deposit and a couple months’ rent in advance are good strategies toward getting approved for an apartment.
