How to Get an Apartment with Bad Credit

Denied! 

That’s a word you never want to hear when applying for an apartment. Unfortunately, many landlords have stringent qualification criteria that can make it tough to get approved for a unit. 

The good news is you don’t have to let a poor credit score prevent you from finding a place to live. How do you get an apartment with bad credit? It requires extra persistence and creativity. The tips below could help you. 

Can you get an apartment with bad credit?

Yes, you can get an apartment with bad credit. However, not every apartment may be available to you. Some apartments owned by large corporations will have minimum credit requirements that could put you out of the running. But you could get that rental contract signed with a larger deposit, a private owner, a consigned, or reference letters.

Of course, working to build your credit score over time can ensure that you have a good credit score to show the next time you’re house-hunting. In the meantime, you have options. Some apartments don’t even require credit checks!

9 Tips for getting approved with bad credit 

Being rejected on a rental application doesn’t feel good — especially if you envision living in the new home. In some areas, like New York City, the competition can be fierce, adding to the stress if you have a lower credit score. How to rent an apartment starts with planning and persistence. Here are the steps to take to get approved.

1. Be honest 

Transparency is paramount when attempting to rent an apartment with bad credit. Let the property manager know that you’ve had credit challenges in the past but recently turned over a new leaf. They may be willing to overlook your credit score and approve your application if you have a valid reason for the credit mishaps. You can offer an additional deposit or references to increase your chances of approval. 

2. Rectify credit issues 

If you have time before moving, grab a copy of your credit report from the three credit bureaus: Experian, Equifax, and TransUnion. They’re available for free from AnnualCreditReport.com. 

Review all the items on your report and file disputes to have inaccurate or untimely information removed. This could drag down your score and prevent you from getting approved for an apartment. If your credit score is low because of high debt, create a plan to pay off debt faster to gradually improve it.

MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills. A good credit score can help with getting approved on a rental application. 

3. Offer a larger deposit

Ask the landlord if they’re willing to accept a higher security deposit. This helps minimize their financial losses if you break the lease. You can also ask to prepay a few months of rent before you move in to demonstrate that you are a financially responsible and trustworthy future tenant. 

4. Try private landlords

Often, private landlords aren’t as stringent as corporate entities that operate large apartment complexes. Some require credit checks, while others only request a security deposit. Before you apply, ask what they’re looking for in a tenant. If credit checks aren’t required, no need to disclose your credit issues.

But if they are, speak with the landlord to plead your case. They may approve your application by communicating that your finances are back on track and offering a higher deposit (if needed). 

5. Move outside of the city

Apartments in prime city locations tend to be more selective. The owners and landlords know there’s more competition, and some aren’t willing to risk renting to those with shaky credit. On the other hand, the demand for apartments in the suburbs may not be as high, and you can find properties that aren’t quite as difficult to get approved for. 

6. Get a roommate

If you choose a reliable roommate who can apply for the lease, your credit score may not be an issue. If the landlord allows the primary tenant to sublease rooms, you can rent from the roommate without a credit check. Or, consider asking the roommate to be a co-signer with you. 

7. Get a co-signer

Do you have a close friend or relative with pristine credit? Ask them to co-sign the lease with you. If the co-signer meets the landlord’s eligibility criteria, you shouldn’t have trouble getting approved. 

Remember that the co-signer will be on the hook for missed payments, late fees or other penalties. If you break the lease, refuse to pay, or are evicted from the apartment, your credit will also be hit. So, this option should only be used as a last resort. 

8. Provide reference letters

If this isn’t your first time renting an apartment, contact past landlords and ask that they write reference letters on your behalf. The letter should state that you made timely payments while occupying their property. Hand over copies of the letters to your prospective landlords to strengthen your application. 

Unable to get a reference letter? Ask your past landlords for a document detailing your rental history, and use this instead. Or consider a special type of renter’s insurance that grants the landlord coverage. 

9. Hunt for rentals that do not require a credit check

No credit check apartments do exist! Many rentals don’t require a credit check, especially in smaller towns or suburbs. Start by requesting referrals from friends, family members, past landlords, or neighbors. There are also some bad credit apartments that approve tenants with low credit scores. 

What credit score do landlords look for? 

It depends. Some landlords require a minimum credit score of 620, but that number can be much higher or lower, depending on the neighborhood and demand. For example, some private landlords may require a credit score of 740 or higher, while a good credit score 670 is a common threshold for properties owned for commercial rental companies.  

The only way to know what credit score you need to get approved is to ask. You can also find properties with landlords that don’t conduct credit checks. Check on networks like Craigslist and apartments.com, or ask people in your network if they know anyone renting an apartment. You can even get a rental with no rental history. 

How to start rebuilding your credit 

If you’ve ignored your bad credit, now’s the perfect time to boost your credit health. As mentioned earlier, you want to start by disputing any errors or untimely information to have it removed. Then, look deeper at your credit reports to see what’s causing your credit score to drop and focus on those problem areas. 

The most common factors that can hurt your credit score include:

• High total debt: Create a plan to pay off debt, starting with high-interest debt. 

• A high debt-to-credit ratio is the relationship between your total debt and the available revolving credit. Aim to use no more than 30% of available credit. 

• Late payments: These marks stay on your credit report for seven years but will gradually impact your score less before dropping off the report. Set up automatic payments to avoid future late payments. 

• Not enough history: If you just got your first credit card and had no previous debt, you may not have enough history. Consider using a rent-reporting company, credit-building loan, or becoming an authorized user to boost your score faster. 

• Negative marks: Issues like bankruptcy or foreclosure stay on your credit report for 7 to 10 years and can drag down your score. While you cannot remove them sooner, focus on the other points to build a positive credit history over time. 

• Applying for too many credit cards: Too many credit checks on your credit report can lower your score. Avoid applying for new lines of credit to (gradually) reduce that impact. 

Getting a rental with bad credit

Not all landlords will even ask for credit, and of those that do, not all will be willing to approve you with bad credit. But if you come in honestly and are willing to offer a larger deposit or a co-signer, you can get into a rental that meets your needs. You can also consider apartments that accept low-credit scores.

Whether you’ve got a rental or are still on the hunt, improving your credit score can make the next rental easier. Need more help? Join MoneyLion WOW membership and apply for up to a $1,000 Credit Builder Loan with a competitive rate and no hard credit check.

FAQ 

Do landlords check credit scores before renting out apartments?

Yes, many landlords check credit scores before renting out apartments. Some landlords check directly, while others may ask you for your credit score. 

How long does a bad credit history stay on record and affect my ability to rent an apartment?

The length of time bad credit marks stay on your credit report depends on the type of mark. Negative marks can stay on your credit report for up to 10 years. 

Are there any government programs that assist individuals with bad credit to find housing?

Government assistance programs like Section 8 vouchers can help people with bad credit rent a home. The U.S. Department of Housing and Urban Development (HUD) provides information on rental assistance programs and low-rent apartments.