How to Qualify for an Apartment with Bad Credit
More times than not, landlords run credit checks against their potential tenants.
Just like credit card companies or loan issuers, landlords want to know how much of a financial risk a renter poses. Therefore, credit checks present a challenge to renters who lack credit history or have a low credit score. Thankfully, there are some ways you can qualify for an apartment with bad credit.
1. Get a Co-Signer
One way to qualify for an apartment with bad credit is to enlist the help of a cosigner. A cosigner is an individual who agrees to pay a borrower’s debt if he or she defaults on the loan. This should provide a landlord with the financial reassurance they need.
However, cosigning a loan is a serious responsibility. In the event you’re unable to pay your rent and your cosigner can’t come up with the money, it’s well within your landlords right to name both of you in a lawsuit. Because of this, it’s important to be sure both you and your cosigner can afford the apartment’s rent. It’s important to have a thorough conversation with your cosigner before agreeing to both sign the lease.
2. Pay a Larger Deposit Upfront
In some cases, landlords may be willing to look past a bad credit history if you pay a larger deposit for the apartment upfront. If you have the means, offering to pay some rent up front in addition to the security deposit can help alleviate any financial doubts the landlord might have. Rental deposits are capped in some states, however, so make sure you know your particular area’s rules and regulations before agreeing to pay upfront.
3. Find an Independent Owner
If you have bad credit, you may have better luck working with an independent owner as opposed to an property management company. In some cases, private owners may be more understanding of your situation and willing to work with you. Be sure to do some homework beforehand though. Reviews of independent landlords aren’t as readily available, so you’re going to have to put in a little extra work to make sure they’re legitimate.
4. Offer Letters of Recommendation
A letter of recommendation from a reliable source could be a great way to validate your fiscal responsibility. Asking a previous landlord to vouch that you are responsible can make a great impression on your new landlord. Alternatively, you could ask your current employer for a letter detailing your current compensation. This would show a landlord that your current cash flow will be enough to manage your monthly payments.
Of course, one of your best options is to simply wait. Taking some time to rebuild your credit score might be the easiest way to ensure you’ll qualify for an apartment. Providing you make your loan or credit card payments on time and keep your credit utilization low, you should start to see a rise in your score. Once you’ve built it back up to a respectable figure, you’ll be able to apply for the apartment you need! If you’re in a situation where you have so much unmanageable debt that it’s negatively impacted your credit score, Tayne Law Group may be able to help you get back on track. Tayne Law Group deals with all types of debt from credit cards to student loans and everything in between. Tayne Law is sure to have a debt solution for you! Call us for a free consultation today at 866-890-7337.