You found the perfect apartment in the perfect part of town and are ready to sign a lease. The only problem is your credit; it’s awful, and it’s killing your chances of renting the perfect pad. While no one expects most renters to meet the stringent credit requirements that go along with being a homebuyer, adverse credit can be a lease killer for several reasons.
-It’s a reflection of your credibility
Your credit history is a summary of your entire financial life. It has the ability to instill confidence or implant doubt. Property owners want assurance that they will get a rent check on the first of every month, without fail. Bad credit renters don’t offer much in the way of assurance.
-Leaving without notice
Most property owners have been around the block when it comes to dealing with tenants with poor credit histories, and many believe them to be a flight risk. Sometimes tenants leave without notice, break a lease and fail to pay damage to the unit or past due rent or other fees. This costs the property owner money he usually does not want to spend.
-Chances of eviction are higher
If a landlord has an inkling that you are unlikely to pay your rent on time, he knows he may have to evict you. Evictions aren’t free. The time and money it takes a property owner to file eviction paperwork is often not worth the risk associated with renting to a tenant with substandard credit.
-If you have lousy credit
For individuals with poor credit, there are four ways to improve your chances of getting a lease.
1. Get recommendation letters from all past landlords, offsetting the negative information on your credit report.
2. Obtain copies of positive accounts not listed on your credit report. Landlords might accept 12-months of on time payments utility companies or cell phone providers as a replacement for a satisfactory credit report.
3. Find a co-lessor or roommate with excellent credit.
4. In lieu of outstanding credit, some landlords accept prepaid rent. Be prepared to prepay three to four months of rent and your deposit when signing your lease.
Renting an apartment when you have imperfect credit isn’t impossible, but it is tricky. Check your credit before you start looking for your new place. Obtain a free copy of your credit report from annualcreditreport.com and dispute or settle any negative accounts.