How to Rent an Apartment With Bad Credit
There was a time when having bad credit made it difficult to get approved for a home loan, but easy to rent an apartment. Today, it seems as if the tables have turned. Now, there are plenty of sub prime or bad credit mortgage lenders offering bad credit home loans, whereas some apartment complexes are refusing applications because of the applicant's poor credit history.
If hoping to rent a luxury or nice apartment with bad credit, consider the following tips for getting your application approved.
1. Get a Letter of Recommendation
If the apartment complex rejects your rental application due to poor credit, offer to submit a letter of recommendation from your previous landlord. In some instances, apartment leasing departments want to ensure that the applicant has a good rental payment history. In other word, if you've been late on credit card or auto loan payments, but consistently paid your previous rent on time, the leasing agent may approve your application. On the other hand, if rental payments are habitually late, or if you've been evicted from an apartment, this destroys your chances of getting approved for a new apartment.
2. Offer to Pay Several Month's Rent in Advance
Apartment leasing departments refuse applications for various reasons. The main reason is bad credit or poor rental history. A good way to make sure that your application is approved is to offer to pay several month's rent in advance. Negotiate with your landlord and establish an affordable arrangement. This effort displays your seriousness and willingness to cooperate. Of course, in order to do this, you must have the available cash, or be able to borrow the funds. Propose the arrangement prior to completing a rental application and submitting an application fee. Review your credit before applying, and anonymously contact the apartment leasing department and inquire about rental requirements. Some complexes aren't concern with credit history, whereas many luxury or upscale apartment complexes have strict rental requirements.
3. Get a Co-signer
If you can't qualify for an apartment on your own merit, consider getting a co-signer or putting the apartment in someone else's name. Rental contracts are not reflected on credit reports, and won't lower your co-signers credit score. On the other hand, if you fail to adhere to the rental agreement, the apartment will seek payment from the co-applicant. Before asking someone to co-sign your lease, make sure that you are fully capable of paying the monthly rent.
