Divorce, medical bills , and job loss are common situations that lead to bad credit. Make sure your letter describes how you've cleaned up your finances and why you can handle a rental. Be careful about the situations in which you use letters of recommendation. If a landlord hasn't checked your credit and isn't aware of your credit history, they may become unnecessarily suspicious when you hand them a letter explaining your past financial problems.
Landlords may get your permission before checking your credit, so it won't be a surprise when they do. Sufficient income can sometimes offset a negative credit history. First, you need to make about three to four times the monthly rent, not just to meet the landlord's requirements, but also to ensure you can afford the payments. Second, you need solid proof of your income.
Two or three months of pay stubs proving your stable income is often sufficient. Whether you're able to get around the credit check altogether or you get approved for an apartment despite your credit history, expect to pay more money upfront. You might be required to pay a higher security deposit or between one and three months worth of rent to move into your new apartment. Getting someone to co-sign your lease is another, last-resort option. Your co-signer will need to meet the necessary credit qualifications, so they'll have to have a solid credit report.
Keep in mind that if you don't keep up with your payments or get evicted for any reason, the landlord can legally go after the co-signer for the value of the lease. It's therefore wise to use other people's credit sparingly and be even more careful with it than your own. Your landlord can pull your full credit report and see everything it contains, including unpaid accounts, late payments, collections actions, bankruptcies, and your overall credit score.
A landlord will be most interested in things that could make you an unreliable or problematic tenant, such as delinquencies, criminal records, and bankruptcies. Although evictions don't show up on your credit report, they will be on your rental history, which a landlord will likely check as part of the screening process.
They generally stay on your record for seven years. Federal Trade Commission Consumer Information. Mesa Properties, Inc. Be Prepared for a Background Check. Intuit Turbo. ES Property Management. Bay Management Group. Actively scan device characteristics for identification. Use precise geolocation data. The one you can qualify for may not have a pool, workout room or built-in cable package. It may even be on the less-desirable side of town, or could require a longer commute. By readjusting your expectations and treating this period as a "rebuilding" experience, you will give yourself time to rebuild your credit.
As a bonus, paying less for a smaller space or fewer amenities allows you to keep that extra cash in your pocket. While you're doing all you can to show potential landlords that you are a worthy applicant, you should also be aware of what they are looking at on your credit report. Even if you've used the strategies above and have rented an apartment, it's important to find ways to make your next experience smoother while also building your credit. Knowing what a landlord is looking for on your credit report and why is an important first step.
Your payment history, rental history, debt and bankruptcy status are all important parts of your consumer profile. Landlords and rental companies will weigh all these factors to determine whether a tenant-landlord relationship makes sense. So before you apply, take the necessary measures to improve your credit and thus improve your chances of approval. Here's how to do it. How to Improve Your Credit Score Before Getting an Apartment If you're trying to rent an apartment with bad credit and have a few months to spare, concentrate on ways you can improve your credit score.
If renting an apartment is your focus, these are the most important steps to follow in the months leading up to applying. Pay all bills on time : Payment history is the most important factor in your credit score , so making all your payments on time every month will help your score improve and show a strong credit history. Creditors and landlords like to see consistent payments over a long time.
Pay down your debts : Do you have credit card debt? What about an old student loan? If you have time before you plan to get an apartment, focus on paying down your debt. Reducing your balance by paying down your debt can help raise your score.
If you're serious about renting an apartment with bad credit, consider getting a free credit report from Experian so you can identify your red flags before applying and work to improve your credit for the long term.
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If you have a question, others likely have the same question, too. By sharing your questions and our answers, we can help others as well. Personal credit report disputes cannot be submitted through Ask Experian. To dispute information in your personal credit report, simply follow the instructions provided with it. Your personal credit report includes appropriate contact information including a website address, toll-free telephone number and mailing address. To submit a dispute online visit Experian's Dispute Center.
If you have a current copy of your personal credit report, simply enter the report number where indicated, and follow the instructions provided. If you do not have a current personal report, Experian will provide a free copy when you submit the information requested. Additionally, you may obtain a free copy of your report once a week through April at AnnualCreditReport. Learn more. Editorial Policy: The information contained in Ask Experian is for educational purposes only and is not legal advice.
You have a few options here:. Money talks. If you have the funds to do so, paying a little extra can help turn even the most skeptical landlord into a true believer. Because of this, they may be less inclined to ask potential roommates to submit a credit check, or even to sign a proper lease. If you have some serious blemishes on your report, finding a situation like this can be a great option—just make sure the landlord is OK with you living there before you hire that moving truck.
If the pockmarks on your credit report were the result of life situations beyond your control, you have a right to make that known. You can read the sample letter from the FTC. According to the FTC , this letter should:. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information and request that it be removed or corrected.
You may want to enclose a copy of your report with the items in question circled. Keep copies of your dispute letter and enclosures. Credit bureaus will typically investigate your dispute and resolve it within 30 days.
For more information on how to dispute an item on your credit report, head over to the FTC site. California Residents, view the California Disclosures and Privacy Policy for info on what we collect about you. By clicking Continue, you will be taken to an external website that is not operated or managed by OppFi.
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