Renting an apartment

We all know that a low credit score can affect many financial endeavours you may encounter in your daily life; including trying to rent an apartment. This applies to whether you have been paying rent for years or if you are a brand new renter. Either way, a low credit score can make your apartment search quite difficult, but there are ways around it. We have put together a list of tips to aid you in your search and not let a low credit score stand in your way.

What is Your Credit Score?

By finding out what your credit score actually is can help to avoid situations where it may be a problem. Be prepared before you commence your search. You can find out your credit score from one of these agencies: CapitalOne®TransUnion® and Equifax®. You are eligible for one free credit check per year from each of these credit reporting agencies.

Honesty is the Best Policy

Having a low credit score can be a problem for most landlords, but not all of them. If you’re concerned that your low credit score is going to stand in the way of an apartment you really love, try being honest with the property manager/landlord before they run your score. Not only will this help your credit score (each time it’s run takes points away) honesty can work in your favor. Some credit scores can be affected by things out of your control like illness or layoffs. Be prepared with references from former property managers or employers that demonstrate you are responsible and reliable.

Find a Roommate

An extra person living in the apartment means divided bills, which not only will play a huge part in getting you an apartment, it will help you to become more financially stable thus improving your credit score.

Co-Signer or Guarantor

Landlords want to be reassured that you will pay your rent on time. What better way to bolster this guarantee than by having a second party responsible for paying your rent should you fail to do so. Remember that your co-signer will be taking a risk too, so be sure that your new apartment falls within your means and making the rent won’t be a problem for you. 

Offer to Increase the Damage Deposit or Pay in Advance

Having a low credit score might result in a larger deposit or advance payment of rent. This will help to reassure some managers that you are capable of providing the rent required every month despite what your credit history says. It will also buy some added security should you be unable to pay your rent. Be prepared and save some extra money before you begin your search for a new apartment. By offering to provide a larger damage deposit or advanced rent will help your case even more!

Proof of Employment

By having proof of stable employment will work to further prove you are capable of paying rent and help you to obtain that lease. Previous tax returns, as well as paystubs, can assure future managers that you are regularly employed and completely reliable when it comes to paying rent on time.

Although having a bad credit score can make renting an apartment difficult; it doesn’t have to be impossible!