To rent an apartment with no or low credit score, you can get a cosigner, rent with roommates with good credit scores, offer up references, provide proof of income, or pay a higher security deposit.
Your credit score counts for a lot. It can determine which homes you’re able to buy if you’re looking to get into real estate and even which apartments you have access to. For people who have a low score — or don’t have one at all — the apartment search can be intimidating. No credit check apartments are one option, but be wary before renting.
Even with a low credit score, there are ways that you can qualify and get approved by a landlord who does perform checks. This will give you access to more options and services, like on-site amenities and simple processes for filing maintenance requests. It’ll also open up new opportunities in the city that you’re searching in, whether you want to live on the north, south, west, or east side.
What Is a No Credit Check Apartment?
A no credit check apartment refers to a rental property that does not conduct tenant background or screening checks. These apartments do not require you to submit the standard application, pay fees, or provide references before you sign the lease and move into the unit.
No credit check apartments work well for both eager renters and eager landlords who are trying to fill their properties. If you are a renter with a low score or no score at all, you can usually get approved for these types of apartments.
What Are the Risks of No Credit Check Apartments
While no credit check apartments can help you easily get approved for housing, it can be a gamble. Here are the risks involved that you should consider.
- The landlords of no credit check apartments are usually just as desperate to rent out their apartments.
- The landlord may have issues filling the real estate if they are a difficult person to rent from.
- Properties may have issues in regard to living conditions, or the rental could be a scam.
On your search for no credit check apartments, do your due diligence by researching the real estate before you sign a lease.
Why Do Landlords Check Your Credit?
Landlords utilize tenant background checks to collect information on prior rental history and payment records. They want to know how responsible your are to decide whether you qualify to rent their property. This is why they typically require references and a credit check.
Your credit report includes such information as debts that you have, as well as your payment history. Background checks are meant to weed out irresponsible residents.
For instance, if you have a history of late rent payments or eviction records, most landlords would rather not take the chance on renting their property to you.
On the other hand, if you have a history of managing your debts responsibly and making on-time payments, landlords will feel more comfortable allowing you to rent their property.
Potential landlords won’t find personal information such as income or employment status on your credit report.
What Credit Score Do You Need to Rent an Apartment?
The majority of apartments require renters to have a credit score in the low- to mid-600s. For some apartments, it could be 620. Other apartments may require a credit score as high as 650.
The good news is that, even for apartments that require a credit check, the landlord might not rule you out if you have a score much lower than that. Your file provides a basis for how you manage your finances. However, there are other indicators that can help your case.
How to Get an Apartment With a Low Credit Score
You shouldn’t rule out apartments with credit checks because your score is low. If you keep your options open, you’ll have a wider array of neighborhoods to search in. You’ll also unlock creature comforts, such as parking, hardwood floors, and more bedrooms and bathrooms.
Get a cosigner
One way to get approved for apartments is by adding a cosigner to your lease. A creditworthy relative or friend can improve your chances of being approved. They can also provide some level of assurance that they will be responsible for any rent payments if you don’t make them.
You should not, however, take your cosigner for granted. If your potential cosigner isn’t willing to take on the responsibility of being a responsible party, it could hurt your case.
Rent with roommates who have good credit scores
Another way to get approved for apartments is by renting with a roommate who has a good credit score. This will improve your chances of being approved for the apartment.
You shouldn’t assume that having a roommate with good credit will be enough, however. The landlord can review your application and the rental history of each tenant individually before making their decision, meaning they could reject one or both of you based on your background check.
Offer up references
The people who know you best can help improve your chances of being accepted into an apartment. It’s just like with a job opportunity. If there is anyone in your life that knows how responsible and dependable you are with money, offer them up as references. Then they can speak on your behalf during the application process.
When applying for housing, your best bet is to submit former landlords as references. These references, in particular, can speak to your strengths as a tenant.
Provide proof of income
Most landlords will want to know what you do for a living. If you can provide proof of income in the form of pay stubs or W-forms, it can help your chances.
Landlords are always on the lookout for tenants who have a steady income and won’t have trouble paying their rent when it’s due. If you’re able to provide these forms of verification, it will go a long way toward convincing them.
Pay a higher security deposit
You should always be looking for ways to cut costs when possible. However, if you are interested in an apartment and able to pay the extra up-front cost, it can work in your favor. Despite what a landlord sees in your file, they may keep you as a candidate but require more money. This is to secure the apartment as insurance against any possible damage or missed rent payments.
Improve your credit score before renting
If you’re not in a rush, spend the next several months boosting your credit score so when the time comes to apartment search, you have a higher likelihood of getting approved.
Boosting your score sounds easy, and it can be. If you put in the time and effort, you can usually see positive results in just a few months.
However, improving your score takes discipline. If you’re ready to take on the challenge, it’ll pay off by giving you access to more real estate options and many other benefits.
7 Ways to Improve Your Credit Score
A good credit score can not only help you secure the apartment that you want, it sets you up for much more success in your personal and financial life.
1. Pay your bills on time
Whether or not you pay your bills on time accounts for 35% of your credit score. The best way to ensure that your score improves is to make on-time payments. Missing a payment can cause your account to be delinquent and result in late fees, additional charges, and damage to your credit rating.
2. Manage your credit utilization
For the next 30% of your score, it’s all about how much you owe. If you have outstanding balances on your cards that are close to or at their limits, this can be a red flag for lenders and result in lower scores. Finance experts advise that you keep your credit utilization at 30% or lower.
3. Keep credit accounts open and in good health
The length of your credit history accounts for 15% of your score. As long as your accounts are in positive standing, you should keep them open to maintain an established credit history. Keep credit cards active by occasionally using them on routine purchases, like groceries. Don’t forget to pay them off in full at the end of each statement cycle.
4. Limit hard inquiries and credit requests
Inquiries and credit requests make up 10% of your score. If possible, it’s best to limit hard inquiries, especially before applying for an important line of credit or rental. Too many will reduce your scores.
5. Make your thin credit file thicker
People with thin credit files have few (if any) accounts listed on their credit reports. There are a few things that you can do to add weight to your file. Apply for a secured credit card. Become an authorized user on someone else’s card. Ensure that on-time utility or cell phone bills are being reported to the credit bureaus if necessary.
6. Consider debt consolidation
If you have a large amount of outstanding debt, you could consider consolidating it through a personal loan or balance transfer credit card. This is not the best option for everyone. However, it can help you keep down your credit utilization and pay off debts quicker.
7. Review your credit reports
It’s important that you check your credit reports regularly to identify any inconsistencies or errors that may be holding your score down. You can get free copies of your credit reports once per year through AnnualCreditReport.com.
