7 Steps To Improve Your Chances of Renting an Apartment With Bad Credit
Written by
Cynthia Measom
Edited by
Ashleigh Ray
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If you have bad credit history, you may feel like you’re unable to get so many of the things you want in life, including the apartment of your dreams. Having a low score may convince you that there’s no point in even applying, even if you’ve otherwise been a great tenant with more than enough money in the bank to pay the rent.
There’s no set minimum credit score to rent an apartment, but you’ll have the best luck with a score approaching 670. This score is considered “good,” according to FICO scoring models. A score lower than 620 could make renting more difficult.
Though you may be frustrated, you’re fortunately not doomed. Not all apartments require you to have the world’s most sterling credit to get into your new home. There are actually several workarounds for people with bad credit who are seeking their next new home. While some are more preferable than others, they’re all still worth considering. Take these steps to improve your chances of signing an apartment lease with bad credit.
Find ‘No Credit Check’ Apartment Listings
Some apartments don’t actually require you to undergo a credit check at all.
Look in your local classifieds or on media platforms for apartments that are listed for rent with no credit check required. When you’re looking at sites like Rent.com, you can also opt for a filter that shows you apartments that don’t require credit checks.
Get Letters of Recommendation
A good tenant is one who has paid rent on time, taken good care of the property and maintained a positive relationship with landlords.
If this sounds like you, you can ask for written recommendations. A prospective landlord might take these positive recommendations into account and overlook your bad credit.
Find a Cosigner
Ask a family member or close friend with good credit to sign the lease with you. A landlord might approve your rental if you have a co-signer or guarantor with good credit.
Keep in mind that your cosigner is accepting a legal liability to pay your rent in case you don’t pay it, so think it through. As a last resort, consider using a lease guarantor service.
Prepay Rent
Offering to pay rent in advance demonstrates to the landlord that you are serious about committing to stay and pay. This is especially true if you prepay the last month’s rent instead of the first month’s.
If, for example, you prepay the first three months of a 12-month lease, you could default in the fourth month with no serious consequence beyond having to move. If you prepay the last three months’ rent instead, you’ll forfeit that money if you default at any time during the first nine months. That provides a better incentive for you to honor the lease, and it guarantees the landlord at least four rent payments.
Prove You Can Afford the Rent
A landlord’s chief concern is that you can pay rent. They might be more willing to rent to you if you include pay stubs, electronic deposit records or other written evidence of income for the past two years that shows your ability to pay.
Landlords would be particularly keen to see letters of recommendation, paystubs and statements proving that you’ve paid utility bills.
Find a Roommate
Another option is to find a roommate. Look for someone who is already renting an apartment and needs a roommate.
You can even look for someone with good credit who is interested in renting an apartment with you and splitting the expenses. Just hope they don’t snore or take a lax attitude toward dirty dishes.
Be Willing To Settle for Less
If you have bad credit, you might have to settle for a less desirable area and/or a smaller apartment with fewer amenities than you’d prefer. You could also look into commuting from a more affordable neighborhood.
David Navarro, Caitlyn Moorhead and Daria Uhlig contributed to the reporting for this article.
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