A bad credit rating will cause all sorts of problems, from getting your car loan denied, to the impossibility of getting a mortgage. Moreover, you will even have some issues when you’re looking to rent an apartment.
Nowadays, landlords will check your credit score history before giving you the apartment. They’ll want to see if your finances are in order and if you have a good credit rating. This will tell them whether you can make the payments on time or not.
In case you have a bad credit and can’t manage to close the deal on a rental, here’s what you can do to solve this problem.
- Find Someone to Co-Sign Your Rental Application
If the landlord doesn’t believe that you are a trustworthy person, getting a family member or friend to co-sign the application will sort things out. Of course, this tip applies only if the co-signer has an excellent credit rating.
Keep in mind that this option won’t direct the payments to the other person, so you’ll still have to support them yourself. Also, in case something goes wrong with the friend’s rating, yours will go even lower.
- Be Honest with Your Future Landlord and Explain the Situation
Instead of hoping that he won’t find out about those financial problems that you had in the past, just try to be honest about it. People appreciate sincerity, so by putting it all out there, the landlord won’t have any surprises when he discovers your bad credit history.
Furthermore, explain your situation and tell him about how you’ve overcome the problem. This way, he might even respect you for it, and sign the deal.
- Offer to Pay in Advance or Increase the Security Deposit
A bad credit score can make the landlord sceptical. He just met you, so he doesn’t really know if you can afford this rental, or if you’ll make monthly payments.
If you have the money, offer to pay for two months in advance instead of one. This will show him that your income is secure. Even if something goes wrong, the landlord can tap into that security deposit and resolve the problem.
Here Are Some Tips to Help You Out
- Make regular payments to avoid an argument with your landlord. Also, give him a call from time to time to assure him that everything is OK.
- Set up an alarm that will remind you to pay your bills. This way, you’ll avoid lowering your credit rating through skipped and late payments.
- If you’re going through a rough patch, it’s best to look for a smaller rent that you can afford paying.
A bad credit rating can fill you with dread when you’re thinking about how it can impact your life. Still, with some patience and time, you can improve your credit score.
Lastly, remember that regardless of what lead you to your bad credit score, it will disappear from your credit file in about seven years.
