Got Bad Credit? 6 Ways You Can Still Land That Apartment
Everyone makes mistakes in life, including in the world of finance. So you missed a few payments on your credit card bill in college, or were late on a car loan payment or two in the past. Unfortunately, every little mistake like these has a negative effect on your credit score. This little number usually plays a key role in whether or not you get approved for future loans, or whether you should be considered by a landlord for that highly coveted apartment.
But all is not lost. There are a few things you can do to make you look good in front of a landlord, even if your credit is less than par.
1. Be Honest
Don’t bother to hide the fact that you’ve got bad credit. Your landlord is going to find out anyway. Your best bet is to be up front and honest about your past financial disasters. More importantly, however, you should show your prospective landlord that you’ve taken charge of your finances and have made changes for the better.
Your landlord will (hopefully) appreciate your honesty. Being forthcoming with your landlord about why your credit score is low is extremely helpful. Find out what proof of overall financial stability the landlord is looking for in order to be eligible to sign a lease.
2. Flash the Cash
You’ve been open and honest about your credit score. Now it’s time to show your landlord the money. Cash really is king in the world of real estate, even when it comes to rental properties.
Even if your credit score is lagging, you can still boost your chances of sealing the deal if you can offer your landlord cash up front for first and last month’s rent, and a security deposit. If you can, offer up the first three to six months of rent in advance. That’ll get their attention.
3. Prove Your Income Stream
Having enough money to cover a few months of rent in cash is great all on its own. But if you can prove a long-term stream of income, even better. Landlords will appreciate the peace of mind knowing that you’re good for the money.
A solid income can really go a long way when it comes to convincing a landlord that you’re the right tenant for the unit. Have this proof of income ready with you before your landlord even has to ask for it, including a letter from your employer, a few recent pay stubs, or tax returns.
4. Offer to Pay Through Direct Deposit
Offering to have your rent payments automatically taken out of your bank account can also be helpful if your credit score is low-hanging. Instead of your landlord having to bang on your door every month for the rent, or having to rely on snail mail to collect, direct bank transfers can be a really attractive alternative. Many times a landlord will feel more comfortable knowing that a rental payment will automatically be coming out of your bank account every month.
5. Have a Guarantor Co-Sign
If your landlord still isn’t entirely comfortable signing a lease with you because of your bed credit, consider adding a co-signer or guarantor to the lease. Find a trusted friend or relative who’s got a healthy credit score, and who is willing to have their name added to your lease.
This can give the landlord more reassurance that the money will still be collected even if you default on the rent. But do yourself – and your guarantor – a favor and make sure you make these payments all on your own, in full, and on time.
6. Get Yourself a Roommate
If you’ve got no qualms about sharing your bathroom or kitchen with someone else, then consider getting a roommate who can share the rent. In addition to splitting the rent, all other bills will be split as well, including the utilities, cable, phone, internet, and so forth – an added bonus!
Having bad credit will definitely put you in a position to jump through a few more hoops than the next guy. But that shouldn’t stand in the way of you landing that great apartment. Be diligent, work hard, and be responsible going forward, and your landlord will take notice.
