Does Bad Credit Affect You When Renting A House?
Intentionally having bad credit is obviously not in the minds of any person naturally. In an ideal world, those who do have loans will remain in good credit standing, with sufficient funds to pay off their debts regularly, like clockwork. However, today’s economy is far from being ideal, and as such, more and more people are actually having a more difficult time managing their finances.
As if that’s not enough, there are still a lot of other expenses that must be taken care of, regardless of whether or not they do have the money to pay for it. One of those expenses would be renting a house so that families can have a decent roof over their heads. With bad credit histories, however, is it even going to be possible to enter into such a transaction? Will your bad credit affect your ability to rent a house?
The answer is both yes and no. It’s yes because definitely, your credit history will have bearing on your capacity to rent a unit or a home. It’s no, however, in the sense that it shouldn’t really preclude you from being able to rent. Sure, it’s going to be a bit more difficult for you than those with a good credit standing, but it’s hardly the case that you will be turned away on the spot on the mere basis of your bad credit history.
Rent.com reports that 81 percent of landlords have already adjusted their credit policy standards so that they can accommodate more tenants, despite having bad credit (According to Fox Business). Said the president, Peggy Abkemeier, “Given the economic climate, many property managers are still experiencing higher vacancy rates, and some might be willing to bend the rules a bit in order to keep their units occupied.
Be that as it may, you should keep a keen eye on the conditions stipulated by your landlord in the contract when renting with bad credit. The last thing you need is to add to your list of credit inadequacies with your rent.
Here are some ways for you to have a pleasant renting experience despite the seemingly problematic bad credit that you have.
Disclose your credit history to your landlord
An effect of bad credit is the record tarnishing your reputation. You wouldn’t want to aggravate it by lying to your landlord about your credit issues.
You don’t have to be afraid that they’re going to turn you away for it. What you should do instead is to appease them by showing that you will be able to meet your monthly obligations to your rent. Showing your company paycheck and paying double the deposit should prove to be enough surety for your landlord.
Find A Landlord Who Does Not Prefer Credit Checks
Of course, that is a short cut that you would be hard-pressed to find, it’s likely the property won’t be the cream of the crop and if you go this route you will only temporarily avoid going through all the usual processes. Long term you will still have to face up to the repercussions of having bad credit. Therefore, rather than creating a vicious cycle for yourself, a better option may be just coming clean, laying all the cards on the table right from the start.
Provide good references
It can be an old neighbour, colleague, or peer. Preferably, however, it should be your previous landlord. After all, it should be a good gauge for your new landlord to determine that you are someone trustworthy enough to allow to live in his apartment despite your financial difficulties.
Although it is going to be quite a hassle, your credit history is something that you cannot simply escape when you want. The best way for you to deal with renting an apartment with bad credit is to have people put in a good word for you. Or at the very least, make sure that you can guarantee that your new landlord won’t be another notch in your bad credit post.