Key points about: getting an apartment with bad credit
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It’s possible to rent an apartment with a bad credit score depending on the landlord's policies.
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Look for no-credit-check apartments or independent landlords.
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You may have access to more apartment options by improving your credit score.
Apartment hunting can be tough, but the search can be even harder with a poor credit score. Like creditors check your credit score before approving you for a credit card, landlords often pull your credit report before leasing you an apartment. A good credit score can improve your options, but bad credit can be grounds for rejection. Here are a few ways to make it possible to rent an apartment while you work on improving your credit score.
Can you rent an apartment with bad credit?
It’s possible to rent an apartment with a bad credit score, but it could be easier with a good credit score. Some apartment complexes run by management companies may have strict approval qualifications, while others may not or may offer no-credit-check options. Independent landlords who own their rental units may consider renters on a case-by-case basis.
Some may be willing to look past poor credit, depending on the reasoning. Since policies vary, find out the landlord’s rules before applying to avoid a hard hit to your credit score if there’s no chance of qualifying.
Typically, landlords look for tenants with good credit scores because it demonstrates responsible financial behavior. A good score helps assure landlords that tenants can make monthly rent payments in full and on time, while a low credit score may point to poor money management skills.
Can you rent an apartment with no credit score?
Some landlords may be willing to rent to someone without a credit history if they have a cosigner. Others might accept other evidence of other reliable behavior, like academic transcripts showcasing good grades (for students with no credit) or letters of recommendation from previous landlords or employers (for immigrants or people without credit history).
Did you know?
The right credit card can help you build credit history. The Discover It® Secured Credit Card helps you build your credit history.1 Plus, you can earn rewards for eligible spending while you work to improve your credit score.
How to rent an apartment with bad credit
Renting an apartment with bad credit isn’t impossible, but it may require extra effort. Here are a few things you can do to improve your odds of being accepted as a tenant:
Look for an apartment that doesn’t run a credit check
Some apartment complexes or privately owned rental properties may not run a credit check as part of their application process. If you think a low credit score may prevent you from getting an apartment, consider searching for no-credit-check apartments in your area.
Large apartment complexes tend to have strict policies since they must set standards for liability reasons and streamlined operations. Private landlords don’t typically have the same legal or insurance-based regulations to uphold, so they can make decisions on a case-by-case basis and may be more willing to accept renters with poor credit.
Add an additional security deposit
A bad credit score or no credit score may make you appear as a risky prospective tenant. You can try to offset the risk by offering a larger security deposit at move-in. Along with the first month’s rent, last month’s rent, and security deposit that many landlords require upfront, consider offering an additional deposit to lessen the landlord’s concerns.
Offer more than the listed rent price
If you have your heart set on a specific apartment, it may be worth offering more than the asking rent price to secure it. A landlord or rental company may be willing to waive their credit requirements in favor of a higher monthly rent. However, don’t commit to a number you can’t afford. You should still be able to make the monthly payment in full and on time every month.
Some landlords may accept proof of income in place of a good credit score. You’ll want to demonstrate that you make enough to afford the monthly rent comfortably. Depending on where you live, a landlord may look for a monthly salary three or four times the monthly rent. Landlords may also favor applicants with a consistent monthly income. Be prepared to provide pay stubs or bank statements as proof of income.
Find a roommate or cosigner
If you don’t have good credit, you may be able to get support from someone else with good credit. Consider a cosigner, roommate, or guarantor with a good credit score. This could make the potential landlord feel more confident about renting to you.
Provide evidence of payment history
A bad credit score doesn't always indicate poor financial management skills; sometimes, it results from unfortunate situations like being laid off from work or other financial hardships. Try providing proof of good payment history, like prior credit reports, bank statements, or electronic transfers. You can include a letter of recommendation from a previous landlord that highlights your reliability as a tenant. Don’t forget to talk about your commitment to rebuilding your credit.
If you’re looking to build your credit for the first time, consider a credit card available to those with no credit history. For example, Discover offers student credit cards and secured credit cards to qualifying individuals.
Be honest about your credit score and situation
Consider having an honest conversation with the landlord before applying for an apartment. Be truthful about why your score dipped and what you’re doing to improve it (you may be working with a credit counselor, aggressively paying off debt, or staying on top of your payment schedule). A landlord may be more flexible with their requirements when they know the face behind the application and hear your story.
Save money before you apply
Savings and other assets could help you build a profile as a reliable renter. Remember that your goal is to offset the risk that the landlord undertakes by renting to you. Assets such as a sizeable certificate of deposit or cash savings may convince landlords that you make smart financial decisions.
Improve your credit score
Building your credit score takes time, but it can create more opportunities to rent the apartment you want. A good credit score can also give you access to credit (credit cards, loans, and mortgages), lower car insurance premiums, and may have other advantages.
See if you’re pre-approved
With no harm to your credit score2
Try these steps to improve your credit history:
- Pay down any outstanding credit card balances.
- Make monthly loan and credit card payments in full and on time.
- Avoid carrying a credit card balance.
- If you must carry a balance, keep it as low as possible.
- Check your credit report regularly and dispute any errors that may lower your score.
While a bad credit score or no credit history may make apartment hunting difficult, financial preparation and open conversation can go a long way. While with these tips you may be able to find an apartment, there’s no substitute for a good credit score. Improve your credit score and open doors to new apartments, more credit, and other advantages.
