It’s no big secret in the United States that for working adults, credit score is one of, if not the main, way of showing companies how well you pay your bills and whether or not you deserve to be granted loans and lines of credit.
If someone has a high credit score, they should usually be able to apply for loans, credit cards with higher spending rates, and more with little issue. For someone with bad credit, however, they will have a hard time getting financial companies to even look at them, let alone lend to them.
Luckily, you can access online payday loans for bad credit thanks to lenders who work with bad credit borrowers, such as Personal Money Network online. To further compound problems for folks who deal with bad credit, many landlords might not even rent an apartment or a house to someone suffering with credit problems. How are you supposed to catch a break?
How Does My Credit Affect My Renting Situation?
Your credit score tells companies “This is how good this person is with paying their bills on time.” If you pay all of your bills on time and your accounts are all up to date, your credit score will reflect this with a higher number. If you have trouble paying bills and don’t have all your accounts up to date, then you probably have a lower credit score.
Like many banks and big businesses, many landlords use credit scores in determining how potentially trustworthy someone could be in making sure their rent is paid on time. Not all landlords use credit, though, so you could get lucky in that department.
What Can I Do to Rent a Home With Bad Credit?
All is not lost for you if you want to rent a home with bad credit. Whether you’re looking for an apartment or a rent house, you should still have options locally. Try some of the following tips when you are a bad credit renter looking for a place to live:
- Offer to pay a higher deposit
In order to offset the credit problem, your landlord might ask to pay a higher deposit than most people are asked to pay. While this isn’t ideal, it is one of the ways you’re going to get your foot in the door. If your potential landlord hasn’t offered this up as an option, you should think about mentioning it to see if it is an option the landlord would consider for your case.
- Come in with a cosigner
If the landlord can’t rent you out a place due to your credit, consider asking someone you trust if they will help you out by cosigning on a place for you. Cosigning is where the credit of someone else is used to help you out, so make sure you make all of your payments on time to ensure your cosigner’s credit score isn’t negatively impacted.
- Talk with the landlord
Remember, landlords are human too. Sometimes, if you are upfront and honest with them about your situation, they will listen. Some landlords might be pretty set in their ways when it comes to how they rent out their units, but you never know, you might be able to sway them when you tell your story, and if not, then the worst thing they can tell you is no.
Landlords are people, too, just trying to make their living in the world. Like anyone else, they have to make sure their backs are covered so they can pay their bills, so it is understandable for them to use credit scores as a way of determining financial trustworthiness. At the same time, you’ll find many landlords will be open and willing to talk to you, and possibly even make an exception, if you explain your story and your circumstances to them.
Moving in and Moving Up
Once you have the rent agreement on your new home squared away, you should be ready to begin moving in. Now that you have a new home under your belt, you can work on slowly trying to do other things that will aid in bringing your credit score up, which will then begin to open up other doors and possibilities for you.
A new home is just the beginning. A great credit score will help you really get where you want to go, with the home and the life you have always dreamed of.