Did you know that as many as 26 million Americans are considered to be “credit invisible?” This means they have absolutely no credit history. This means that if you have no credit or even bad credit, you’re certainly not alone.
Similarly, if you're like most people, you've probably had to deal with the frustration of trying to get an apartment when you have bad credit. It can seem like almost every landlord out there is only interested in tenants who have a perfect credit score.
But don't worry — there are still ways to get approved for an apartment even if your credit isn't great. In this quick guide, we'll give you nine tips on how to get an apartment with no credit or bad credit.
Can You Get an Apartment Without Credit?
It can be difficult to get an apartment without credit, but it's not impossible. While your options might be more limited than the options of those with better credit scores, it’s important to keep in mind that many landlords are willing to work with tenants who have bad credit. With a little effort, you should be able to find an apartment even if your credit score isn't perfect.
How to Get an Apartment With Bad Credit or No Credit
Finding an apartment that's both affordable and comfortable can be a challenge, especially if you have no credit. If you’re just starting your apartment search then start by doing some research online. Several websites cater to people with no credit, and they can be a great resource for apartment hunting.
Once you've found a few possibilities, reach out to the landlord or leasing agent to see if they're willing to work with you. Be upfront about your situation and explain that you're working to build your credit. Often, landlords are willing to give someone with no credit a chance if they're otherwise qualified.
Next, have some money saved up for a security deposit. This is usually equal to one month's rent, so it's important to plan. Additionally, be prepared to be flexible on your apartment hunt. You may not find your dream apartment right away, but keep looking, and eventually, you'll find somewhere that's just right for you.
Ready to officially start hunting for apartments? Here are 9 tips on how to get an apartment with no credit or with poor credit.
1. Find a Co-Signer
A co-signer is someone who agrees to sign the lease with you and be legally responsible for paying rent if you can't afford it. This gives landlords some peace of mind knowing that they'll still get paid even if you can't make rent. So if you're looking to rent an apartment with bad credit, see if you can find someone willing to co-sign the lease with you.
2. Pay Months in Advance
If you're looking for an apartment but don't have any credit, agreeing to pay a few months' rent in advance can help you get approved. This is because it shows the landlord that you're willing and able to pay your rent on time. Paying in advance also gives the landlord some financial security in case you do end up missing a payment or two.
3. Provide a Reference Letter
When applying for an apartment, be sure to include a reference letter along with your rental application. You can get a reference letter from your previous employers, professors or even co-works.A reference letter essentially vouches for your character and responsibility and can give the landlord some peace of mind that you'll be a good tenant. Ultimately, this could be the difference between getting the apartment you want and being passed over in favor of another applicant.
4. Build Your Credit
Not having any luck with the tips so far? If you have the time, one of the most important things to do before applying to lease a house or apartment is to work towards boosting your credit score. There are several ways to do this, such as paying your bills on time, maintaining a healthy credit card balance, and avoiding late payments. By taking these steps, you can help improve your chances of being approved for a rental.
5. Report Your Rent Payments
If you’ve rented an apartment before, you can find rent reporting services to get your rent reported to credit bureaus and build up credit instantly. Keep in mind, though, that not all rent reporting services are created equal.
Some rent reporting services may only report your rent payments to one or two of the major credit bureaus, while others may report to all three. Additionally, rent reporting services typically charge a monthly fee, so be sure to factor that into your budget. However, all in all, rent reporting is a great way to improve your credit score easily.
Not sure where to find those types of services? You’ve found one right here! Cheese is offering you the best rent reporting service. For just $49, we’ll report up to two years of your rental history to all three major credit bureaus. Additionally, for just $5 per month, we’ll continue to report your ongoing rent payments monthly.
6. Work With a Private Landlord
Search for “private landlord no credit checks near me” and see what comes up on Google. Or, try searching for “privately owned apartments with no credit check.” Chances are there are a lot of results, right? This is because working with a private landlord is often a lot easier than working with a property management company.
7. Offer to Move In Immediately
Sometimes, an immediate move-in with no credit check is a possibility. Immediate move-ins are a great trade-off for most landlords because it allows them to fill the vacancy immediately. Most tenants need weeks or even months before they’re ready to move in and this leads to lost income and wasted time for most landlords.
8. Show Your Income or Savings
Have no credit but a high income and savings? Some landlords may be more likely to rent to you if they see that you have a steady income or that you have saved up enough money for a deposit.
However, it’s important to remember that every landlord is different and that there is no guarantee that showing your finances will help you get an apartment with no credit. In the end, the best way to increase your chances of getting an apartment with no credit is to be polite and honest with potential landlords and to show them that you are responsible and reliable.
9. Be Patient
Finally, our last tip is to simply have some patience. We know; that’s probably not what you want to hear right now but it’s critical as you navigate the process of applying for a rental contract with bad or no credit. That being said, there are a few things that you can do while you practice patience.
First, be sure to start your search early. The sooner you start looking, the more options you will have. Then, be flexible in your search criteria. If you are willing to consider different locations or different types of apartments, you will have a better chance of finding something that you like. Finally, don't be afraid to ask for help from friends or family members. You never know who might be willing to co-sign a lease for you.
Report Your Rental History With Cheese
While the 9 tips listed above can help you find a “no credit check” house rental, building your credit is a great way to ensure your financial security and prosperity long-term. Not only can great credit help you easily find and apply for apartments, but it opens the doors to a lot of other great perks, too. Namely, great credit provides you with access to better interest rates on loans and credit cards.
How can you focus on building your credit quickly? Start reporting your rent ASAP. With rent reporting, you can build your credit instantly. In fact, most people see their credit score increase between 35 to 50 points in as quickly as 15 days (although the exact results will vary depending on your financial situation and current credit score).
Whether you’re trying to build credit now or have just snagged your dream apartment, don’t forget to report your ongoing rent! Not sure how? As mentioned, Cheese can help you with that.
To get started, sign up here.
