Housing ReliefFollow the tips in this quick guide, and you could overcome that obstacle despite your credit history.
Renting an apartment can be difficult for anyone. But if you have no credit history, snagging that apartment may seem impossible. While landlords may not be too keen on renting to someone without a credit history, there are ways to get around this problem. Here they are:
1. Look for individual landlords instead of large companies.
If you’ve ever tried to rent an apartment from a large complex or a property manager, you probably know that there are a lot of hoops to jump through. Such communities will have several requirements for prospective tenants, with credit checks being one of them. And even if you’re honest about your lack of credit history, a property manager or large rental company probably won’t be flexible with their rules.
An individual landlord, on the other hand, may not be so strict. They may look at tenants on a case-to-case basis. Explain your issues to such a landlord, and they could let you rent if you make a certain income, offer to pay more upfront, etc., especially if they need to find a tenant soon.
2. Pay more upfront.
Why do many landlords require credit checks? To reduce their risk and get peace of mind knowing that the tenant will pay on time. However, if you have no credit history, you’ll have to offer that peace of mind another way, such as paying more upfront.
Tell the landlord that you’ll pay them a few months’ rent before moving in. Or say you can leave a larger security deposit. This could be your key to getting accepted.
3. Ask for a month-to-month lease.
With a month-to-month lease, you can prove your worth to a landlord and show that you’re a tenant who can pay the rent on time. After a few months of timely payments, you can then switch to a long-term contract.
4. Prove your income.
A landlord usually looks for tenants who make 2.5 times the monthly rent. Such income means the tenant can probably afford the rent without any issues. With no credit history, do all you can to prove you make enough income. Provide the landlord with as much payment verification as possible, including copies of bank statements, W2 forms, pay stubs, etc.
5. Move in quickly.
A landlord in need of quick cash may accept you with no credit history if you can move in quickly. For instance, if there are 10 days left in the month and the apartment is empty, the landlord may take you in so they can gain that extra income versus waiting until the first of the month.
6. Co-sign with someone.
Perhaps the easiest way to rent a place with no credit history is to get a co-signer. Whether it’s a parent, friend, or relative, the co-signer will be responsible for the rent. If you leave or fail to pay, the co-signer will be on the hook financially. So, while this is an easy option for you, there may be issues with finding someone willing to sign their name to the lease.
A similar option to getting a co-signer is to get a roommate with a solid credit history. As with the co-signer, they will be responsible if you fail to pay.
7. Write a personal letter with references.
Adding a personal letter to your rent application could help you stand out from the pack. It could also help explain why you don’t have credit, so the landlord understands your situation. Be sure to include references with your letter to bolster its credibility.
