Applying for an apartment with bad credit is not always easy, since most landlords and property management companies check credit scores of potential tenants. Thus, it has been seen that having a poor credit rating does not necessarily mean that one is a candidate for homelessness or a low-quality living standard. This is where you can look at certain factors and tweak them in a way that would garner a positive response.
These are some guides on how to secure an apartment while having bad credit.
1. Find Private Landlords
Independent owners of small properties are usually not as stringent on credit as large apartment providers. This is because they are in a better position to assess applicants’ suitability for the job than just rule out individuals based on a score. Some of the places to look for privately owned rental units include looking in the local classified section for apartments for rent, multi-unit residential homes, or small apartment complexes. This way is much easier to get a place to set up a tent as well as to spend the night.
2. The patient may be willing to pay higher initial payments.
In this line of thinking, the applicant must be willing to pay up to 6 months to a year in advance to counterbalance credit risk. This also ensures the landlord that you are financially responsible. Another form of incentive is to increase the amount that you deposit against your security. Consequently, more money invested in the initial deposit to rent encourages many landlords to take risks and rent to tenants despite poor credit records. Just make sure that now and in the future, you can afford to pay the rent as the rent amount is recurring.
3. Get a Cosigner
If you are affiliated with someone with good credit standing, then you can ask him or her to settle the lease agreement with the apartment owner on your behalf. This means they agree to pay your rent should you default on meeting your obligation as far as rent is concerned. In effect, you reap from the sound credit they have put in place. Tenants are relieved knowing that the landlord similarly has the assurance of the lease responsibility being taken by a reliable person.
4. Write an Explanation Letter
Below is a sample letter that landlords can be drafted to write in cases of negative items on credit reports. Demonstrating self-awareness can help. If you had special reasons such as a few months of unpaid bills or layoff, what were these? Well just do not make excuses or start to blame others for one thing or the other. Accept full responsibility for putting yourself into this position.
5. Highlight Other Qualifications
What other qualities would you consider as good tenant qualities? Place such individuals at the forefront of your rental applications. Aspects such as having a strong employment record, a decent amount of income, a clean rental history, and professional references are all ways to offset poor credit. Emphasize promoting your features instead of concealing the flaws.
6. Akintola J: Offer to Pay Rent Directly into the Landlord’s Account
Using a checking account to facilitate the automation of the rent payment helps to avoid cases of late payment. It can help landlords be assured that rent will be collected regularly for they to continue paying their bills each month. Two, it will be convenient for them since they will not have to spend time hunting for checks.
7. Get involved in a Credit Builder Loan Program
If there is free time before apartment searching it is recommended that one joins a credit builder loan program. These involve giving borrowers a fixed monthly installment to a locked savings account, for 6- 24 months. These programs make on-time payments to credit bureaus over time and thus enhance the credit score of the borrower. Hikes, even as small as one-fifth of one percent, can open up entirely new realms of rentable properties.
8. Rent from Individual Owners
Leasing companies across the board automatically disqualify an applicant if he/she does not meet a specific credit score. The score numbers are likely to be a greater concern to big landlords than to individual ones as the latter will also take into account other factors. Making friends with owners and salespeople will ensure that they are not so rigid with numbers that are attached to a real person. This helps open doors especially if there are other qualities that the employer is looking for in an employee or a job candidate as the case might be.
9. Rather than paying rent monthly, encourage your tenants to pay in advance or offer an option that allows them to pay upfront in installments.
As stated earlier on, it is recommended that you present a prepaid of 3-6 months rent can go a long way. Again, it is almost impossible for such individuals to find a way of coming up with such a huge lump sum required. Be a little more innovative by agreeing to pay it in 3-4 installments, once the loan is approved. First-month rent + one month's deposit paid at the beginning of the tenancy, the next 2-3 rent cheques endorsed directly to the owner at the time the cheques were earned.
10. Consider Less Desirable Units
It, therefore, follows that the newest looking, most attractive units in the choicest areas will always draw the most attention and be the most scrutinized or ‘screened’. To get better rates with bad credit, they are encouraged to explore older buildings in the periphery areas. Overall, landlords experience greater difficulty in renting out these units and are consequently motivated to take risks on candidates with low scores. It’s also important to note that you can always ask for an upgrade after some time of establishment of Trust as well as maintaining a good Credit Score in terms of payment.
The Bottom Line
Though this is a blow, it can be said that those with bad credit have a harder time searching for the perfect apartment but it is by no means impossible. It is advisable to incorporate some of the commendable suggestions highlighted above in an endeavor to eradicate negative items that tend to pull down your score. Sometimes, it only takes a little effort, time, and patience to secure a good place to live in, and then one can make sure that he/she will rebuild a good credit score for the years to come. As much as it may be hard, do not allow that which you have done in the past to define your future. With commitment to improvement, you’ll do as you wish, at the place you wish to be at some point in the future.
