How to Rent an Apartment With Less-Than-Perfect Credit

Renting an apartment isn't easy right now, especially with the current housing market. Add credit problems to the mix and it can be nearly impossible to rent an apartment. Luckily, there are ways to improve your chances of renting an apartment when you have bad credit. 

Some landlords are willing to rent to people with less-than-perfect credit. But, extra steps often need to be taken. If you're trying to rent an apartment with bad credit, the tips provided here can help you improve your chances.  

Focus on Your References 

If your credit has taken a turn for the worse in the past few years, take a look at your rental history. If you have a good rental history, you can use that to get approval for a new apartment. When you pay your rent on time and don't cause rental problems, landlords are more willing to provide a favorable reference for your next apartment. 

And, because you have a positive reference from a previous landlord, a new rental agency is more likely to approve your application.  

Boost Your Credit Score 

If you have a low credit score, you might think you're locked out of renting a new apartment. That might not be the case though. Before you give up, go over your credit report. There may be incorrect information in your report. If there is, have those items removed from your report before you apply for a new apartment. 

It's also a good idea to include a personal statement with any negative marks on your credit report. A personal statement can help you explain unforeseen circumstances that caused your credit problems.  

Highlight Your Finances 

When your credit history is questionable, you can increase your chances of approval by highlighting positive aspects. Highlighting your financial stability can make you more desirable to landlords. If you're going to apply for an apartment, gather your financial documents. 

These documents should include recent pay stubs, bank statements, and employment verification letters. If you have checking and savings accounts, provide statements for both accounts. Try to provide several months' worth of documentation. 

This information can demonstrate your ability to make timely rent payments. These documents also show potential landlords your financial stability.  

Increase the Deposit 

Landlords often require cash deposits when renting apartments. Many times, landlords will offer a lower deposit requirement for people with good credit. If you have poor credit, increase your deposit. You can improve your chances of approval by offering a bigger deposit. The bigger deposit shows landlords that you're committed to being a better tenant.  

Explain Your Credit 

If you have major issues on your credit report, don't try to hide them. Instead, offer a letter of explanation to potential landlords. These types of letters are useful in explaining the circumstances that caused the credit problems. 

Those situations may include loss of employment, debilitating injuries, or life-threatening illnesses. Letters of explanation help landlords understand that it wasn't a pattern of bad behavior that got you into financial difficulties.  

Find a Co-Signer 

If you're struggling to find an apartment to rent with bad credit, don't try to go it alone. Instead, find a co-signer to improve your chances. Your co-signer ideally should be someone who has better credit than you do. They can be a friend or family member. When someone agrees to become a co-signer, they agree to make rental payments when you can't. This provides assurance that rent payments will be on time.  

Don't give up on finding a new apartment. Give us a call at Montgomery Realtors. We're here to help you find quality rentals at affordable prices. We can help you find a new apartment with less-than-stellar credit.