It can be difficult to secure a loan when you have a considerably ‘bad’ credit rating. It takes time to increase your rating and finding a rental during this period can be a headache. Fear not, this is not the end of the world and that is why we have compiled a list of ways to get you a rental – with the credit rating you have.
1. Leave More Money Down
Landlords just want to know that they will get paid so all you need to do is show them that you truly can afford the apartment. Offer to lay down a larger security deposit. This gives them recourse and will make any landlord feel better when signing with you. Another method is to offer to put down the first and last month’s rent. Money in a landlord’s hand will speak louder than any credit rating or promise of payment.
2. Get a Guarantor or Co-Signer
Someone vouching for you will always put you further ahead than having no one in your corner. But a guarantor or co-signer is even more than that! They are putting their name down on your contract to pay for your rental if you fail to. They are ‘guaranteeing’ that the rent will get paid – which any landlord will love.
3. Provide Proof Of Income
Your landlord wants to know that you have enough income to make your payments. If you can prove this to the appropriate parties then your credit rating will become less of a concern. When heading to sign the contract, you want to show proof of your income by providing pay stubs. It is suggested to show your landlord a couple of months’ worth of pay stubs in order to prove that this was not a one-time payment.
Offering proof of a stable income will answer the majority of worries, especially if your rental amount follows the basic rule of thumb. The rule of thumb is that your rental amount is less than 30% of your total gross income (before taxes). By providing this proof the landlord can understand the amount of money you are coming home with and help determine if that is indeed enough to cover rent as well as the associated expenses.
4. Consider Living with a Roommate
Getting a roommate will provide many more options when it comes to getting an apartment. With a larger budget, you will be able to look into more units – some of which may not require a credit check. Depending on how well you know your new roommate, you can even have the apartment put under their name and then pay directly to your new roommate. You also have the option to take over the rent of an old roommate who left, or even a temporary sublet agreement, which would give you enough time to increase your credit rating.