Bad Credit Isn’t A Total Limitation
If you establish perfect credit, then don’t make any “credit”-worthy purchases for seven to ten years, you’ll be knocked back to “zero”, as though you had no credit, to begin with, and you’ll have to start all over. The “credit” system is “off in the high grass” to begin with. It doesn’t work as intended. Accordingly, having bad credit is no indicator you’re bad with money.
What bad credit will do is force you to jump through hoops for basic things in modern society. You’ll have to be clever to get a loan or sign a lease for an apartment. However, just because it’s more difficult to get what you want with bad credit doesn’t mean it’s impossible. Here we’ll briefly cover a few ways you can get your ideal apartment even with credit woes.
Get A Roommate You Trust With Better Credit To Sign The Lease
This involves a bit of a compromise, but it will work. Find an apartment where more than one can legally reside on a dual lease, then have your friend sign the apartment lease. After that, you get on the lease in addition to the primary “renter”, who is the friend you’ve decided to room with.
It’s almost better if you’re not friends with someone when you go to the room with them, as tensions will definitely rise over time; that’s just human nature. However you do it, going this route will very likely work; just do your research beforehand.
Advance Payment And Expanded Security Deposits
Pay more than the first and last month’s rent in advance. Think from the landlord’s perspective. They’re not just offering a paid public service, they’re running a business. So if you can make it worth the landlord’s while, he or she might approve you for a unit even if your credit isn’t so good. It’s just got to be profitable for them to take your money.
Now a first and last month’s rent payment—that’s kind of “par for the course”, as the saying goes. That’s not too compelling. But paying three months upfront will likely do the trick, as will paying a double security deposit. Now that could make it so your downpayment is something like $5k, but then you don’t have to pay in anything for three months; after that, it’ll just be a fraction of that cost.
Getting Someone To Cosign On The Application
A cosigner who has good credit and is willing to vouch for you can sidestep bad credit issues in a rental for you. Once you’ve gotten the help of a co-signer or other additional party, you can save money in the move by using services like UMoveFree. These help you more efficiently move your belongings without overspending, allowing you to resume productivity faster.
Provide Clear Evidence Of Steady Income
One thing it’s hard for a landlord to argue with is a steady income. If you can demonstrate you regularly make more than enough to pay rent, and have been doing so for a long time, that’s a compelling argument to a landlord. If you can demonstrate you’ve got substantial assets in the bank, this is also compelling.
If you’re savvy and have the resources, you can do things like pay your total lease all at once; perhaps at a discount. For example, if an apartment were $1k a month, you could pay something like $10k or $11k for the year—rather than the $12k you’d pay otherwise. Now, this scenario is rare, but if you’ve got the means and the right landlord, it could be a win-win.
Get Compelling Letters Of Recommendation
A letter of recommendation from someone of undeniable community standing who a landlord can confirm will do much to cement your viability as a renter. If you have anyone you know willing to provide you such a letter, and who a landlord may contact to assure veracity, then this can help you get approved despite the bad credit.
Overcoming Credit Woes
Bad credit can be a real problem; especially when the credit agencies themselves are less than scrupulous. Even if you’ve got good credit, it’s wise to find ways around credit score confirmation to secure things like rentals. That said, if you’ve got terrible credit, there are options. Look through those presented here and see which fits your situation.