Looking for an apartment is a difficult job for any tenant. It is difficult for people who have high credit.
A credit score is a number from 300-850. It shows a person’s creditworthiness.
The person with a higher score gets a better lender in purchasing stuff. A credit score is based on the person’s credit history.
It is especially challenging for tenants who don’t have any credit. Many landlords are hesitant to let someone rent their property.
It is rare for a landlord to let someone with no credit stay at their property. Landlords usually accept people with financial stability.
Generally, they want someone who is financially responsible—people who can pay their rent according to the lease conditions.
A credible credit can give a massive benefit in acquiring an apartment. If a person doesn’t have a credit history, here are ways to get an apartment without credits.
Look for an Individual Owner and Rent from them.
Most of the apartment and management industries will check your credit history. They would also require a lot of qualifications that the tenants should have to rent their property.
They are not that flexible, and it has a low chance to give a tenant an opportunity with no credit.
On the other hand, some independent owners will allow a renter without established credit. They were more likely to allow a renter without credit.
Individual landlords would be likely to evaluate each prospective renter. They will go run over to the case of the application on a case basis.
They may not run a credit check as well—some individual landlords emphasize the renters’ monthly income.
So, individual landlords are more willing to give a tenant a chance.
Have a “Move-In Right Away” Agreement
Vacant apartments are costly for landlords. They’ll need to pay utilities and mortgage even though there’s no one living in the empty apartment.
They are obliged to shell out money for costly things to maintain their property without any reimbursement in the form of rent.
Moving in immediately may convince the landlord to let a no-credit person rent in their property.
A person can certainly rent a place with low rental demand. Because of these reasons, a person without a credit history can move in immediately.
To be approved by having an Income or Savings balance.
If a person doesn’t have an established credit history, they can be approved if they have a stable income. Having a steady income can show that a person is capable of paying the rent.
It is advised to keep one’s rent costs to less than a third of a person’s income. For example, if a person makes $3,000 a month, he/she have to look for spaces for lease with monthly rent as low as $1,000.
On the other hand, if a person has an unstable income, a good savings balance can be enough to get an apartment. Typically, apartment complexes and management companies require their applicants to show their savings balance.
It is to know that an applicant can pay for his/her rent. Ideally, the savings balance can cover their rent payments.
It is essential to choose an apartment that is within your means. It will make you financially secure and capable of paying the rent on time.
Pay the Rent Advance
Homeowners will likely to let a person rent their property if the money is at their disposal. When they pay in two to three months in advance, it will give the landlord a sense of peace and trust. More likely, he will let a person rent longer.
Just make sure that everything, including the payment process, is documented. Documenting everything will ensure the renter can get back the payment at the end of their lease.
Provide Reference Letters
A person can prove their character through professional and reference letters from their past professors, teachers, or employers. Getting a recommendation from these people will help a lot of people to get an apartment.
These references and recommendations will assure the landlord that an applicant is responsible enough to rent. Having connections can show that a person is financially reliable and dependable.
It is an excellent way to show that a person is responsible enough to rent an apartment.
Offer to the landlord on a month-to-month basis.
A month-to-month or a three-month lease can give the landlord an option not to renew a renter, especially in a time that they no longer pay the rent.
It usually takes a long process to force out a tenant that is not paying the rent on time. That’s why a month-to-month and three-month lease is a good offer for a landlord.
Within this time, it is the tenant’s moment to prove to the landlord that they are worth the risk of letting them stay.
The tenant can show the landlord that he/she is responsible for paying and living in their property.
Move-in with Someone with a Good Credit
Moving in with someone who has an established credit is more likely to get approved by the landlord. That will make the landlord feel secure knowing that one of his/her tenants has a good credit history.
It is better to be a responsible roommate and pay the bills and rent on time. A tenant with no credit can do this while establishing the credit history.
It is also a good idea if the roommates will come up with a roommate agreement. The roommate agreement will outline each expectation and general rules inside the apartment.
General rules will include the cleaning, shared spaces, noise, and house guests.
Get A Co-signer If Everything Else Fails.
If everything fails, a tenant can ask a family or close friend with a credible credit score to co-sign for him/her. A tenant should explain to the co-signer that they will be made responsible for the rent payment.
Besides, if ever the tenant can’t pay on time, the landlord can still feel secure. Even though a tenant can’t pay, there is someone that will fulfill them.
It is the co-signer. Getting a co-signer is the most common solution for someone to get an apartment without having a credit check.
How to Turn No-Credit to Good Credit?
When a person does not have good credit, it is always a good time to start working on it. It is easier to establish good credit from the get-go than fixing a bad credit history.
Here are some ways for a person with no credit to build their own:
College Student Credit Card
One of the most straightforward options to build a credit history is to open a credit card. It is easier for a student to get one and create a credit score.
Probably the only difference is that the bank will give a student a lower credit limit. Though, the credit limit will gradually increase if the student will pay on time.
Secured Credit Card
Another way is to get a secured credit card. The security deposit backs this kind of credit card. That’s the reason why it is called a “Secured Credit Card.”
With this credit card, a person can still get a credit limit. However, the credit limit will be determined by the amount of your deposit.
The person will still need to ensure that his/her payments will be on time. With this, the credit history will gain good credit.
Authorized User
Another simple way to establish credit is to be an authorized user of another person’s credit card. Usually, it is the credit card of your parents or family member.
To be an authorized user, a person should use a person’s credit card with good credit.
Also, it is essential to repay the things an authorized user purchases. It will prevent ruining the credit of both people.
It is essential to be responsible for credit use.
Final Thoughts
It is a good thing to have a good credit profile. It will help people to purchase items. Though, not everything will fall perfectly into pieces.
Looking for an apartment without an established credit history is a hard thing to do. The ideas above are things to do to build good credit.
Although, it is better to establish first a good credit before looking for an apartment. So, if an applicant has time, it is the best time to build good credit.
Take advantage of the clean record and be wise about the credit.
Loved this article? Read more insightful posts here:
- How Long Does It Take To Improve Credit Score?
- A Guide To Choosing The Best Credit Card For You
- How To Pay For Mortgage With Your Credit Card: A Review Of Options
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