Renting When You Have a Low Credit Score
Your credit score plays a vital role with moving
. The rule of thumb is this – the higher your score is, the more options you will have. But what if you have a low credit score? Does that mean you can no longer rent a beautiful home or apartment? Of course not! The truth of the matter is this: Your landlord doesn’t care much about your score than you do. But of course, they would also want to be sure they’ve chosen the right tenant. In this article, we’re going to talk about the best ways to rent a home
or an apartment when you have credit is not so good.
Find a landlord who doesn’t run a credit check.
The easiest way to find an apartment or house for rent when you have poor credit is to look for a landlord who doesn’t require it! Yes, you’ll be surprised to know that there are many of them. You see, most do not care about it as long as you pay them the rental fees. In a study conducted in year 2009, it was reported that 81% of property managers have seen a decline in the credit standing of renters. And because of this, 43% of them have reduced their credit requirements to accommodate more clients. Anyway, it’s a common practice for landlords to ask for advance payments and early deposits. Large rental property providers are the ones who would normally run a credit check but there’s nothing wrong if you still applied, though there’s a big possibility that they will turn you down. You can browse the online listings of apartments, townhouses, and houses to get more choices.
Seek referrals from friends or relatives.
Unpaid balances from previous landlords may become a big issue for the new ones. But if you know someone is going to vouch for your financial obligation, the negative impact of your low credit score might be eliminated. When you are recommended by a person who the landlord trusts, you get more chances of renting the house you wanted. You can also look for a guarantor who has good credit standing. Remember this, if lending institutions can accommodate bad credit holders, how much more do landlords?Prove your worth of being a good payer.
If you had rented before and had a good relationship with your former landlord, you can ask a recommendation letter that from him/her which shows that you are a good tenant. Your goal is to remove any worries or fears that the landlord might feel against you because of your credit score. An offer to pay a huge deposit can also be a good idea. If you have plenty of savings, you might spare a bit more for the start-up fee on the rental.
Lastly, you may also need to explain your side. Getting poor credit doesn’t mean you’re not giving attention to your finances. There are instances in our life that put us in difficult situations which cause our credit score to slip down. If you explain your side, the landlord may understand and cut you some slack.