With the state of the current economy many consumers are caught off guard by late payments or owed collections to their credit. Unprecedented economic conditions do not have to dictate your ability to rent a home. It is certainly possible to rent a home with bad credit, meaning below average or even low credit scores. Often times landlords understand these current market hardships with an attempt to balance the cost of rent accordingly. Americans did not plan on getting laid off from their jobs or taking cuts in their hours but the current economic condition has affected people from all over. Today’s economy makes it realistic for a person or family to rent with bad credit, but preparation is the key to succeeding.
If you do have bad credit, being able to explain your financial issues can be the difference between succeeding in renting a home or being declined. Landlords will oftentimes look back at your payment history with things such as insurance, utilities, and phone bills, so having a plan of explanation can be very beneficial. Your plan can include the following items:
A list of references such as former landlords can help.
Having a co-signer with good credit to assist you.
A detailed letter explaining any negative marks on your credit.
You can offer to pay a larger deposit or a higher rent payment.
Retrieve a copy of your credit report so you can more fully understand issues with your credit.
You can offer to improve the quality of the property with landscaping, painting, cosmetic repair, etc.
You can show the prospective landlord your current living place, showing them that you will take great care of their property.
The best advice is to just be honest. A landlord will respect you more if you are straight about what your financial condition is. People know when you are trying to hide something. They will respect you more if you tell them the truth and have a plan laid out about how to address it.
The best piece of advice is to be honest and straightforward with a potential landlord. A landlord will respect their renter more if they can tell that they are dealing with an honest person, and hiding something can jeopardize the opportunity to rent. If you have solutions to your past credit problems then showing that you have a plan laid out is the best recipe for success.