Showing posts with label bad credit renting. Show all posts
Showing posts with label bad credit renting. Show all posts

Thursday, April 4, 2013

Being Able To Rent An Apartment In Spite Of Bad Credit – How It’s Done

Landlord?
Landlord? (Photo credit: the justified sinner)
You may know for a fact that renting with bad credit is a tough call. Landlords may not be willing to accept a prospective tenant who has bad credit because it shows that the tenant has had a history of not paying bills. This is only one of the ways how bad credit affects renting. 

However, you may still be able to rent a home, even with bad credit, your prospective landlord may accept you. 

Here are other tips on how to rent with bad credit: 


1. Talk with your landlord personally and show your credit report. Point out to him the entries where you are repaying your old debts. This will show him that you are earnestly working on neutralizing your debts, and will show him that you will be able to pay him when the rent comes due. 

2. If you have utility bills or rent that are past due, pay them off and have your former landlord sign a certificate that states that you've repaid these bills. Through this, you will be able to demonstrate that you are willing and able to pay the bills. 

3. Show your landlord proof of having a job. If you have a company ID, a payslip or a certificate of employment of sorts, you may show these as proof that you have a job and can pay the bills. 

4. Pay a larger security deposit. In order to help your landlord understand that you are serious about being able to pay your rent, paying a bigger security deposit may help communicate that. Not only that, your landlord will have something to use if you are late in some of your payments. 

5. Work on an auto-debit arrangement. If your landlord can accept a bank transfer or a credit card payment, you can devise a system wherein your rent would be automatically paid to your landlord's bank account at a certain date. You may also want to consider using checks and putting that on an automatic transfer system as well.
 
6. Ask someone to co-sign the lease contract with you. It may be a risk on your friend's part, but this will, at least, assure your landlord that someone else will be able to foot the bill if it comes down to that. 

7. Be willing to accept higher rental rates. Because you have bad credit, your landlord may try to capitalize on that and charge you more for bad credit renting. Grin and bear this tiny inconvenience, since you need a roof over your head. 

Bad credit really poisons a person's life. More than being unable to rent a home in a smooth transaction, bad credit may also keep you from being accepted for a job, or even a promotion. This is why you need to think long-term. 

How to change your financial circumstances for the long haul: 


1. Repay your debts. There's no other way to do it: you really have to repay your debts.

2. Sit with a financial advisor and consult him on how to manage your finances better. Try working with the financial counselors from Dave Ramsey's Financial Peace program.

3. Get a secured card and rebuild your credit. You can rebuild your credit thanks to the use of a secured card. A secured card is backed by actual money, but successfully paid transactions will still appear on your credit report. These successfully paid items will boost your credit score positively, and may bring you back from bad credit to good credit. 

There are simply so many benefits to bringing your credit back from its "bad" state and back into a "good credit standing." These tips will help you regain good credit, beyond teaching you how to rent with bad credit. Even if you will be able to get away with renting with bad credit, you will still need to have good credit for greater things, in the long run: when you apply for a car loan, when you apply for a home mortgage loan, all of these things require you to be in good credit standing. 

So look beyond needing to secure bad credit renting. Look beyond the concern of how bad credit affects renting. Instead, think about all the benefits that good credit can afford you and be inspired to recover your good credit standing. 

Amy Johnson is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics on credit monitoring & credit protection that can help people manage and improve their finances.



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