You have likely been told all your life that you need good credit or excellent credit to be able to rent an apartment, buy a car, get a credit card, and more. It is true, you do need good credit but that does not mean that because you have bad credit, you cannot find a place to live.
Many apartment complexes and independent homeowners or property management companies will run a background and credit check on you when you place an application to rent their property. This is common practice and it may be scary for you, if you are someone with bad credit.
No matter what your credit score is, these tips can help you rent something without worrying about being homeless due to your poor score.
Whatever You Do, Don’t Lie
One of the worst things that you can do is lie about your credit score. These companies and property owners WILL find out if you are lying to them, after all, we just mentioned that they do a credit check. If you are honest with the company or individual, it is likely that they will work with you, especially if you have a good work history and great references.
Know What Your Credit Report Says
To be completely honest with a company or individual, you first need to know what you have to be honest about. Just telling them you have a bad credit score does not say a lot. Did you get evicted because you did not pay your rent? Is your score low because you owe tons of money to an electric company? These things matter.
Take some time to order your credit report and go through it with a fine tooth comb. You should make note of anything on the report that may have someone asking questions about it. You may find that the company or property owner asks you more questions about a particular debt.
Show That You Can Afford the Rent
Your credit report is only a small snapshot of who you are and how you handle your money. You should show the company or property owner that you CAN afford the rent. The best way to do this is to provide pay stubs, tax returns, and even references from the place you are currently renting saying that you paid in full and on time every month.
You also want to show the property owner or company that you have money in your bank account to pay the rent and bills.
Another solution is to prepay for some of your rent. If you find that property owners and companies are hesitant to allow you to rent, inquire to see if you can prepay the rent. Often, this will work, but you do need to have the money to make this type of offer.
Look for Private Owners and Smaller Companies
When you head to the big apartment chains, you will find that they are harder to get into. Yes, you may have thought they’d be easier, but not always. Take some time to shop around and look for private homeowners and smaller companies – you will have more luck.
You Can Still Rent with Bad Credit
Bad credit is not the end all for you. Yes, you may struggle a bit to find something, but there are places for those with bad credit to turn to. Remember, work on improving your score, show you can pay, have good references, and check out the smaller places.