When you have poor credit or no credit at all, finding a rental where the landlord will overlook that may feel impossible. The circumstances of the poor credit may not even be your fault at all, but you’re still being denied. Or, you’ve spent years trying to overcome a mistake you made but it still doesn’t feel like it’s getting you anywhere.
Working with renters on a daily basis, we have come across many different scenarios and we have often found ways to overcome them. Below are the 5 Top Tips on Renting with Poor Credit we give to clients to help improve the chances of securing a rental home for those with poor or no credit.
Have someone co-sign your lease. You want to be independent and secure a lease on your own. However, your credit is low and you aren’t getting anywhere with the landlord. Consider having a parent or someone you trust with a higher credit score co-sign.
Be upfront. Be honest with the landlord and upfront about anything that may show up when they run a credit or background check. Should they find something, be prepared to explain what happened. Chances are, they will appreciate your honesty and be willing to work around a low credit score if you can help them understand what happened.
Offer to pay in advance or increase your security deposit. Show the landlord you are able to keep up with your monthly rent by offering to pay a month or two in advance or by offering to pay a higher security deposit if possible. This will help prove you have a steady income and are able to keep up.
Have proof of income ready. Bring in your offer letter from your company or your last 3 pay stubs. You can let the landlord know your income, however, with proof of that at hand, it will help them see how you plan on budgeting for your new rental.
Bring recommendations. If possible, have your previous landlord write up a letter of recommendation for you. Make sure they talk about how you paid your rent on time, were a responsible tenant and that you never caused any problems. This will help with the validity of what you say to the landlord about being able to maintain your bills and be a good resident.