You've probably heard the advertising line that sounds something like this - "low credit, no credit - no problem!" And you are probably aware that many apartment owners and managers run credit checks on all potential renters.
This is not an automatic deal-breaker.
You still may be able to rent an apartment with no credit or low credit.
Let's look at some of your options.
Investigate Renter Requirements Begin your apartment search online.
Some apartment complex websites include a statement of policy (including assets check).
You can decide if you want to apply at a given complex - even with an asset check policy in place.
Filter your search by looking for apartments that don't require a credit check.
Try searching by entering the city name and "apartments with no credit check.
" You may continue your search by directly contacting the apartment management group or individual by phone.
Among the things you should ask: • Is there a mandatory minimum credit score? • Are applicants considered on a case-by-case basis? The manager may be willing to waive the credit check requirement, depending on your other qualifications.
Small, Privately-Owned Apartment Complexes The best way to identify small and privately-owned apartment complexes is to be on the alert for rental signs, newspaper classified ads, or local classified ad websites like Craig's List.
The advantage of these smaller complexes is that the manager or owner may have more discretionary authority to waive the credit check rules.
Larger communities are typically managed by professional companies that must adhere to screening guidelines.
Build Up a Larger Deposit You may be able to get over the credit check hurdle by being able to pay a larger deposit.
Most states limit the amount of the deposit that a landlord may collect at move-in.
Websites such as nolo.
com have charts for security deposit limits by state.
Be aware of what the limit is in your state before you discuss this possibility with the landlord.
A variation on this plan is to be able to offer a large amount of money as rent in advance.
Unlike the security deposit, rent in advance doesn't have the same legal restrictions as to amount.
The landlord or manager may be very amenable to waiving the credit check if you are willing to pay 6 or 12 months' rent up front.
References and Letters of Credit Previous landlords may be willing to provide references as to your history of on-time rent payment.
And if you were in the habit of paying your rent ahead of due date, ask your former landlord to note that in the reference, also.
Some types of monthly payments don't show up on your credit report.
Such payments typically include utilities companies, storage facilities, insurance companies, and tradespeople.
Ask if a representative from any of these businesses will be willing to vouch for your reliable/timely payment history.
Co-Signing Would someone be willing to co-sign the lease with you? This is a tremendous responsibility in that your co-signer assumes responsibility for paying your rent if you default on your responsibilities.
Be aware that defaulting on your lease can appear in collection accounts and will ultimately on your credit report.
Build Your Case When negotiating with the owner or manager, be honest, courteous, and focused.
Don't try to skirt around your low credit score.
They'll discover that you've made a misleading statement on your application when they run the credit check and may discount your application altogether.
Point out your sound qualifications and do everything to back up your qualifications with reliable references.
Reduce or eliminate any surprises by pulling your credit report before you begin searching for an apartment.
Know your score, dispute any negative/inaccurate information, and improve your chances of landing the apartment you want by your improved credit score and excellent references.