If you have been declined for a mortgage loan due to bad credit, you may find the same reason will prevent you from getting that dream apartment. Credit checks are tools that landlords use to attempt predicting whether tenants will be paying their rent on time. Unpaid debts from previous landlords may get bought by collectors who may then report the debt on your credit. So, how do you improve your chances of getting that dream apartment or at the very least any apartment? Here’s a few points to keep in mind.
Keep an eye on your credit score.
As mentioned, landlords may check your credit to decrease their chances of renting to someone with a history of not paying their rent. How good a credit score do you need? The fancier the apartment the higher the credit score you will need to have. Assuming you are not wanting an apartment with a river view, most landlords look for a minimum credit score in the low 600’s as a starting point. So, keep an eye on your credit score and pay bills on time.
What can you do to improve your chances?
One approach may be to offer to pay a higher deposit. If the landlord requires one month deposit, offer two months deposit. This will give the landlord a good impression about you and you willingness to pay your rent on time and not make a mess of the place.
Another idea is to find someone to be cosigner for you. The cosigner should have a better credit history that yours. However, finding a cosigner may be difficult. It is hard to find someone who is willing to take on debt or past due rent in case that you can’t pay. Particularly, since it can affect their credit also. So, don’t ask someone to cosign unless you are really sure that you can afford the new rent. Don’t let a friendship get broken over this.
Getting letters of recommendation may also help if you are disciplined enough to remember to get them from previous landlords. If you had a good payment history with past landlords, you can still ask them for one. All you want is recommendations to show the new landlord that you can be trusted to pay your rent on time and to not leave the places in worst conditions that when you moved in.
Showing a steady work history is helpful. The longer you stay with an employer it shows landlords that you can be trusted to stay with a job and pay the rent. If you job hop a lot then this puts fear in a landlord that you will have months when you can’t pay your debt. So, may be bring w-2’s to show the new landlord longevity with current employer to increase his trust in you.
What if I still can’t get my dream apartment?
If you still can’t get your dream apartment due to bad credit, then settle for an apartment that may be not meet all expectations, but, that does not require credit checks. This will be most like mom/pop rentals. Most of them will be safe enough.
Lastly you may consider a roommate. Hope this points help a little bit in your search for an apartment. Do remember to keep an eye on your credit score by using free credit reports offered.