Find a Place to Live Despite Your Bad Credit

Sometimes a need for new housing or a change in housing can arise at a time when your credit is not in the best shape. When this happens, it’s crucial to approach finding a new rental in a way friendly to your less-than-perfect credit.

Read on below for tips for renting with bad credit that you may find useful the next time you’re in search for a new place.

Review Your Credit Report

Being in the know about the exact state of your credit can help prevent any surprises during your search and provide you with the opportunity to fix problems. Pull a new report before beginning your new rental search and tackle any issues to the best of your ability, or at the least show an effort to resolve issues.

Knowing the status of your credit and any problems you have will also allow you to be up front and honest with your potential landlord. While your credit may not be ideal, landlords will appreciate your full disclosure.

Seek Rentals that Don’t Perform Credit Checks

While you should be wary of landlords that advertise no credit checks, this situation can come in handy if you have poor credit. Investigate the validity of the offer, however, before providing any deposits or signing the paperwork, as rentals that don’t require credit checks have a history of potential fraud.

Save for a Deposit

Any rentals you are interested in will most likely have a pre-set deposit. States often mandate deposits not exceed a specific limit as well, which protects the interest of the renter. However, if you have a larger deposit than required, sometimes simply offering this to the landlord can show proof of your seriousness and reliability, even if the landlord cannot accept it.

Have Good References Available

References can be an essential asset in trying to prove your reliability in a bad credit situation. If possible, gather written and signed recommendations from anyone you have a positive rental history with, employers, and friends who can attest to your character.

Maintain Stable Income

When bad credit comes into play, the ability to show steady and stable income is the next best thing. Be prepared to show payment stubs, bank statements, tax records, and employment verification. Being able to show a good employment history and the ability to pay your rent with a steady income will reflect on you and your rental chances positively.

Look for a Cosigner

If you have a willing friend or family member with a better credit history, consider asking them to cosign the lease with you. This is not your ideal option for dealing with rentals while having bad credit, however, landlords will feel more comfortable in knowing that someone with a better credit history is offering to take responsibility for your rental agreement alongside you. If you do choose to go this route, paying your rent on time and honoring your agreement is extremely important as any infraction you incur could potentially ding your cosigner’s credit.

Consider a Roommate

Renting with a roommate will not only reduce your monthly rental and utility payments but if your roommate has a better credit history than you, it can mean an easier time finding something to rent.

Inquire on Shorter Lease Options

This isn’t the ideal scenario if you’re looking for the cheapest rent, however, if you have poor credit, it may get you in the door. Landlords may be more comfortable entering into a lease agreement with you if it’s shorter term, which lessens their liability. When the short-term lease is up, the landlord may be more willing to sign a new long-term contract with you at a lower amount if you have shown a responsible and timely payment history with them.