How to Navigate Renting with Poor Credit

A bad credit score means that it is probably challenging to qualify for a rental space. Those with poor credit may likely come across obstacles while trying to rent. Your credit history can significantly affect you, as most landlords use a credit check to screen renters. The credit history will allow them to determine the financial risk you might pose. However, there are ways for renting with poor credit.

Luckily, if your credit score is not too great, there are ways to overcome it and get that rental you want.

Find a Co-Signer

If a good friend or relative with good credit is willing to cosign on the rental application with you, that could help. This doesn’t mean that they have to be living in the apartment. It is simply an agreement that they will cover the payments in the event that you fail to pay rent, giving the landlord the reassurance they may need. This is a lot to ask of someone, and you never want to put them in the position that they would be forced to take over payments for you, so you must be 100% certain you can comfortably make the monthly rent.

Be Honest and Commit to Improve

Unfortunately, sometimes bad credit is due to a financial setback that was out of your control. In this scenario, it is helpful to be transparent from the start before running credit. Being upfront about bad credit can benefit you in the long run, so you can demonstrate the steps you have and will take to handle the issue. Showing that you are responsible and committed to progress can be an incentive for a landlord to give you a shot.

Pay in Advance or Higher Deposit

Landlords understandably feel uneasy about renting to someone with poor credit as it indicates a higher likelihood to default on the rent. If you make renting to you more appealing, it could help your case. For instance, consider agreeing to pay in advance (a month is acceptable) or offering a higher security deposit. This commitment and cash cushion can alleviate their concerns of having to cover losses and damages if you are not able to come up with rent.

Get a Roommate

Would you be willing to get a roommate? A roommate with better credit may be able to sign the lease solo, or you could move in with someone who is already on the lease and has better credit. This is also a good way to save on bills, and with less financial burden, you can pay down your debt faster and repair your bad credit.

Line of Income Proof and Paying via Direct Deposit

Are you able to prove that you currently have a solid income stream? Showing regular income is a great way to ease a landlord. When applying for an apartment, be prepared with proof of income, such as your latest pay stubs, tax returns, and employer letter confirming your income. You can also grant them the ability to deduct rent from your bank account automatically. Direct deposit payment can be just the thing that makes the landlord feel secure.

Increase your Rent

Are you willing to compromise and pay a little bit more? You may be able to negotiate with the landlords, especially if it is through a property management company. They often charge additional “risk” fees if your credit score is poor. Taking the hit can land you the space. Plus, individual managers may be more inclined to deny your application, so if you agree to a slightly higher rent, it shows good faith.

Use Recommendations

Letters of recommendation can work to reassure potential landlords that you are a low-risk, responsible individual. Get letters from current and past employers as well as present and previous landlords. Even a letter from a roommate who can speak on your character can help. The smallest endorsement can make a world of difference. To prevent a devastating situation, you must secure Augusta Renters Insurance.

About SB One Insurance Agency

At SB One Insurance Agency, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.