One of the initial steps when renting is a credit check. A credit check is carried out by the landlord to assess your financial background and patterns. Whilst having a bad credit score can negatively impact your renting experience, there are still many ways to combat this; renting with bad credit certainly isn’t impossible and we’ll talk you through some ways you can improve your renting prospects.
Get Your Score & Report
In order to improve your credit and chances of your rental application being accepted, you need to know what your credit score actually is, so you can start working on it. Contrary to popular belief, less emphasis is placed on the score itself and more on the overall picture of the report. Renting with bad credit may be slightly easier depending on your financial history.
Constantly Review Your Finances
It can be quite daunting to review your finances, especially when you are aware that they aren’t great. Take a look at your finances on a regular basis and consider if you really need all of the outgoings – check subscriptions, bills and debts that need repaying.
Explain Your Personal Situation
Renting with bad credit isn’t impossible, and depending on the landlord, explaining your personal situation may be helpful. Providing proof of a stable income and savings for example, can go a very long way. Putting the landlords mind at ease and letting them know that you can comfortably afford monthly rental payments is paramount.
Consider a Guarantor
This should be a last resort, but if you are really struggling to find a place to rent with bad credit, this may be a good option. If you choose this route, you’ll have to find a cosigner who has a secure income and good credit that they’re willing to put on the line for you in case something happens and you stop making rental payments.
You also need to be certain you will be able to pay rent every month. Missing a payment means your cosigner will be forced to pay it on your behalf.
After fixing your credit, see our previous post about finding your dream rental!