Many landlords won’t even enter into negotiations with applicants with low credit scores. However, there are several ways in which you can make yourself a more appealing rental prospect. There are risks involved with bad credit loan companies as wells so be sure to check out the various way these companies can harm you as well.
If you are suffering from bad credit, you could consider asking a trusted friend or family member to guarantee your rent payments. This is a legal undertaking so should not be entered into without understanding all the potential implications should you find yourself unable to keep up with your rent.
Another way of persuading a landlord that you would be a responsible tenant is to offer a larger deposit. Many landlords will require two months’ rent upfront, and if you are able to offer more, they may be reassured that you will be a good prospect. Obviously, you should only do this if you are sure you can afford it.
If your credit history is less than perfect but you have a decent record as a renter, you could consider asking a previous landlord to provide you with a reference. Receiving confirmation from a former landlord that you have been a responsible tenant could boost your chances significantly.
It’s important not to stick you head in the sand when discussing your credit record. Many landlords will understand that your past financial problems do not necessarily mean that you will be unable to keep up with your rental payments. If you are able to explain exactly what led to your low score, then so much the better. You won’t be the first person to have suffered over the past few years, and some landlords will be prepared to judge each applicant on an individual basis.
Of course, it is possible that you will be able to find a landlord who does not demand a credit report as part of their application checks. You may need to provide other evidence, such as payslips or bank statements, but this extra effort could be well worth it.
Even if you are successful in securing a rental property with bad credit, it is imperative that you start improving your credit score so that in the future you will be regarded as a less risky prospect. Always, without exception, pay your rent on time and in full. If you anticipate any problems, tell your landlord straight away, and definitely before you have defaulted on your rent. Work on paying down any debt you have, such as secured loans or poor credit loans. Taking out short-term Bad credit loans and repaying them on time and in full is another good way to boost your credit score.
If you can make yourself a more attractive rental candidate, you will find that next time you need to move you will have far more choices and will have to jump through fewer hoops during the process.