How to Rent an Apartment with a Bad Credit Score

imageWe all get into trouble from time to time. Some, unfortunately, are reflected in our credit history. And, even more unfortunately, this can significantly spoil our financial relations with banks and even landlords. But you still need somewhere to live despite your credit score, right?
It is possible to rent an apartment with a bad credit history; you just need to prepare a little.  

Get Recommendation Letters

First of all, it is worth applying for letters of recommendation to those with whom you managed to build successful financial relationships, despite past credit mistakes. This may be your previous landlord or a bank where you have a loan and which you regularly pay.

The second option is your employer. If you are still in college or just out of college, this could be a college teacher or counselor. These are the people who can confirm your obligation and responsibility.

Recommendations from family or friends are unlikely to work. Moreover, they can make things worse by giving the landlord the impression that you no longer have a professional relationship and reference to turn to.  

Prove Financial Security

If you have a high income, this can make things a lot easier. Providing some documents will be able to convince the landlord of your reliability. Such documents can be:

Recent pay stubs
Proof of regular rent at your current location
Confirmation of regular utility payments
Bank statements showing your rental history  

Consider Private Landlords

Private landlords are more loyal to people who have a bad credit history. Sometimes they don't do any credit checks at all. But even when the landlord does, you have a chance to explain yourself.

If you can convince a private landlord that you are able to pay for an apartment, you will most likely get it.

Offer a Bigger Security Deposit

Unlike the previous paragraphs, this one will require cash investments. If you have savings or your income allows, offer your landlord a larger deposit than the landlord needs. This will give the landlord peace of mind, and you will get your money back if you comply with all lease terms.

Find a Cosigner or Guarantor

Find someone to sign the lease, ensuring that you pay. Cosigners are usually people you know. They may or may not have conditions that you must agree to before they sign. Guarantors are usually companies that sign a lease in exchange for a monthly fee for your support.

In this case, having an additional signature on the lease gives your landlord more confidence in you. In addition, your cosigner or guarantor agrees to pay for you, which reduces your landlord's risk.

Get a Roommate

You may have to sacrifice your loneliness and comfort in order to find a roommate. Ideally, if this is a person whom you know and in whom you are confident. But it could also be someone who, like you, is trying to rent an apartment without having an excellent credit score.

When it comes to bad credit, landlords just want to lower their financial liability if you don't pay rent. Neighbors share responsibility, and there is a chance for the landlord that one or both of you will pay your rent regularly and on time.