How to Rent with Bad Credit, Liens or Bankruptcy
It seems that our credit scores follow us everywhere these days. From employment evaluations to small loan approval processes, our credit is poked and prodded at by most people deciding whether or not they wish to do business with us. This makes it so vital that people maintain a solid credit score and a financially solvent reputation.
Even when renting an apartment or home, your credit score may be checked. There are many landlords who refuse to rent to people whose credit scores are poor or fair at best, believing they will be a potential risk.
How can you rent the home of your dreams with a bad credit score, prior bankruptcies or other financial difficulties? We’ll walk you through some tips on what can be done.
Enlist Some Familiar Help
If you are dead-set on a particular property, apartment or home that requires passing a comprehensive credit check, then the first place you might want to turn is a trusted friend or family member.
When signing a lease for an apartment or house with a co-signer who has good credit, your chances of being successful increase substantially. By co-signing the lease with you, they are agreeing to be liable for any unpaid debts or damages. This agreement will help eliminate the risk for the landlord in renting the property to you, and help you meet the criteria they’ve set forth.
For several more tips on how to rent with bad credit not covered here, visit https://creditrepaircompanies.com/rent-apartment-with-bad-credit/.
All too many people seeking to rent an apartment do not provide their potential landlords with upfront information about their credit situations. This can often lead to the first real impression they’ll have about your potential tenancy being one of risk.
Instead of letting them discover your bad credit or bankruptcies, be honest and upfront with them about it. Whether you’re meeting with them in person or discussing the matter on a rental application, make mention of your current credit situation.
Many people find themselves with liens, bankruptcies and bad credit for reasons they could not control. For instance, a sudden job loss can cause a mountain of bills and debt to pile up in no time at all. Likewise, a sudden medical condition or illness can drain people of every penny they have. By being straightforward with your potential landlord, you eliminate the risk of them finding out on their own, can frame the narrative in a more positive way, and will earn points with them for honesty.
Offer to Pay More Upfront
Especially in instances where landlords may check credit reports, but have the ultimate say-so in who rents, offer to compensate them in advance for their risk.
For instance, you can enter into an agreement with the landlord to pay your rent one month in advance, to ensure there are no complications. Likewise, you can also offer to provide a bigger security deposit if they initially turn your application down because of your credit score.
Most apartment complexes and landlords want to rent as many properties as possible with as few interviews and applications as needed. Many are going to be more than willing to work with you if you can make it worth their while financially.
Room with Someone with Better Credit
If you are planning on renting an apartment with more than one bedroom, then perhaps it is worth the effort to share your home with somebody else. Whether this is a spouse or a friend, somebody with a better credit score than you can sign the lease and help you get around the problem of bad credit.
Ultimately, there may need to be some agreements between you and the fellow tenant, but you’ll be able to easily rent the property of your dreams if you’re renting to somebody who has good credit.
Provide Reviews and Referrals
If you’re looking for a new place to rent and have been renting for some time prior, you may be able to rely on your referrals and recommendations.
If you’ve kept current on your rent with your current landlord, then you can definitely use this to your advantage. In addition to providing your prospective landlord with this referral, offer character referrals as well: people who have worked with you, know you personally, or otherwise can vouch for your character in general. This will make it easier to convince a landlord who is on the fence about renting to you to go ahead and give you a shot.
While rental applications often include specific segments for providing contact info for referrals, take it one step further by bringing recommendation letters or uploading them to your application form if submitted online.
Ask About Risk Fees
If you are initially turned down for an apartment or home, it may be worth following up with questions about potential risk fees.
In some instances where people with bad credit would like to rent, landlords offer higher monthly rates to balance the risk. This is often separate from the larger deposits or advanced payments discussed earlier. If you absolutely have to have the particular property you were denied for due to a lien or bankruptcy, then it may be worth it to you to pay a little more each month on your rent.
Make Your Application Noticeable
In order to ensure that there’s a greater chance that somebody carefully reviews your application – including all of the information we discussed above – you need to make the rental application stand out from the crowd.
Some of the ways in which you can do this include offering to sign a longer lease, promising to move in ahead of schedule and – as was already mentioned – paying a bigger security deposit. Depending on whether your application is reviewed by a person or algorithm, these additional details and perks can get the attention of those who might otherwise reject your application.
While it may require a bit more work, you can secure the home of your dreams when renting – even with bad credit or blights on your financial record. By being straightforward, offering to pay more, obtaining a co-signer, getting letters of recommendation and reviews and making your application noticeable, you can mitigate the factors that often lead to landlords saying “no”.