7 Ways To Deal With Bad Credit When Renting

house for rent bham al
Renting a home with bad credit

Bad credit can trigger all sorts of issues when trying to get a mortgage, purchase a car or get a credit card.  But even if you’re just looking for an apartment or house to rent, your credit history can pose problems.

Most landlords check credit reports of potential renters to determine the probability of receiving the rent payments.  This can pose a problem when you may have a repossession, charge-offs, foreclosure, late payments or a Bankruptcy listed on your credit report.  When your credit is damaged, you may have a tough time qualifying for that home or apartment that you and your family need.

At reScore Solutions, we understand that many people have fallen on hard times due to job loss, health problems, or having to close a business.  Bad credit can happen even when we do our best to pay our bills on time.

Call us so for a free no-obligation credit report evaluation.  While you are trying to get your life back on track, we can get your credit scores back up and running.

We specialize in getting your credit reports lender-ready so that you will be approved for a home.   Understanding the ins and outs of lending we know what it takes to get your credit reports repaired and credit scores to the specification of your lender.

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Raise your credit scores to qualify for loans and credit cards.

What should you do if your credit history is less-than-stellar? Here are seven ways you can overcome your bad credit and still get that rental you’re looking for:

     1.  Be honest and show that you  have been making progress.  

Sometimes bad credit isn’t a reflection of poor money management.  Be upfront with a potential landlord before your credit is pulled.  Don’t make excuses and blame others. Landlords have heard all of the blame games.  If you are able to show a valid reason why your bills were not paid on time, such as divorce, health, job loss; but also show that it was a temporary situation and show how you have been able to get back on your financial feet, you may have a better chance of getting approved.

     2.  Find a guarantor or co-signer     

Ask a trusted friend or relative with good credit to co-sign the rental application with you.  While you may be the only one living in the home or apartment, your co-signer will be financially responsible if you do not pay your rent.  This may give the potential landlord the extra security that he needs to feel comfortable with renting to you.

Of course, you really don’t want your co-signer having to pay your rent, so be sure that you not over obligate yourself to a rent amount that you can’t comfortably afford.

rental agreement
Co-signer for rental agreement

     3.  Pay in advance or increase your security deposit

Bad credit and especially a consistent bad credit history makes a landlord nervous because it indicates that your actions in the past may be repeated, such as defaulting on the rent payments or not paying on time.  By paying a month or more in advance or offering a two-month security deposit, you can possibly alleviate their concerns. Not only does this show your commitment, it also provides them with extra cash that can cover some of the losses and damages, should you skip out on the rent. (Which, of course, you won’t.)

     4.  Get a roommate

Willing to share your space such as kitchen, living room?  If so, a roommate may be a great solution.  If the landlord will allow just one person to sign the lease, see if your roommate is willing to sign it solo. (Alternately, try to move-in with a roommate who’s mid-lease.) This way, the person on the lease is the one with more solid credit.

The other benefit to having a roommate is sharing the utilities.  Saving money will help you to pay down your debts and helping to repair your credit.

     5.  Show solid income and offer to pay via direct deposit

Even if your credit is a little weak, your landlord may feel better if you can show that you have history with a full-time job with good pay.

When applying for an apartment, have proof of income ready, such as recent pay stubs, tax returns and a letter from your employer verifying your employment status and income. Offering to have your rent automatically deducted from your bank account can also help.

     6.  Be willing to pay a little more

Some landlords, even if you are renting from a property management company may charge additional “risk” fees for shaky credit and poor credit scores.  You may want to step up and pay more if you really love the home or have to move in a hurry.

If you are dealing with an individual, you may want to negotiate to pay a higher amount so that your application is not denied.

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Lower credit scores mean higher interest and rental payments.

     7.  Letters of recommendation

Just as your would provide a letter of recommendation for a job, provide one for a potential landlord too.  Ask for letters from current and previous employers, current and previous landlords, and even past roommates who can vouch for your character. Even if your previous landlords were only for short-term arrangements, their endorsement can hold weight.

Thinking of filing BANKRUPTCY?

There may be a different option than filing Bankruptcy.  We offer free, no obligation credit evaluations to determine if there is an option to avoid Chapter 7 or Chapter 13.  You may have already filed Bankruptcy in the last 10 years and find that this option is not available to you.

You may find yourself dreading to answer the phone and even opening the mailbox.  We at reScore Solutions (a Kirkpatrick & Associates company) are educated in the Fair Debt Collection Practices Act, the Fair Credit Reporting Act and the Telephone Consumer Protection Act.  These laws are set up to protect consumers, but consumers often times are not aware of them and thus do not know how to use them.  We can help.

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Debt collectors calling? Make sure that you owe the debt collection company.

The following is important information that you need to know if you plan to file 7 or 13.  Remember, this will have a great impact on your credit and credit scores for many years.

If you have already filed Bankruptcy, and have been discharged, we can help you rebuild your credit.  Tired of renting and want to purchase a home.  We can assist in rebuilding your credit and make this possible.

Bankruptcy іs а legal status оf а person оr оthеr entity thаt саnnоt repay thе debts іt owes tо creditors.  The bankruptcy laws are intended to provide an honest, but unfortunate debtor an opportunity for a “fresh start.” However bankruptcy is not a free ride.

Personal bankruptcy іs а legal wау tо gіvе people wіth overwhelming debt а fresh financial start. Маnу people dо nоt realize thаt thеrе аrе fіvе types оf bankruptcy options аvаіlаblе undеr thе U.Ѕ. Bankruptcy Code.  Most consumers don’t realize thеrе аrе rеаllу оnlу twо viable options; Chapter 7 аnd Chapter 13 bankruptcy. Іn а nutshell, mоst individuals аnd married couples hаvе twо types оf bankruptcy undеr thе Bankruptcy Code, Chapter 7 оr Chapter 13 Bankruptcy. While you can receive a discharge through Chapter 7, there are various differences in Chapter 7 and Chapter 13.

Federal Bankruptcy
Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

While Bankruptcy may seem to be the answer to overwhelming debt, medical bills and phone calls from debt collectors, we at Kirkpatrick & Associates may be able to help you avoid this.  There is never a charge to find out if we can help you.  Our credit report evaluations are absolutely free and regardless of the outcome, there is no obligation. 

To help you understand  the difference in Bankruptcy we will explain:

Chapter 7

Basics: Will discharge most types of unsecured debt.  The trustee will sell any significant nonexempt property in order to repay your creditors.

Time Frame:  Takes three to four months to complete.

Property:  Keep all or most of your property. Petitioners with significant equity or assists that are not exempt by law could lose them to satisfy some debts.  Meeting with a Bankruptcy attorney. Regina Rose Hudson. is a great way to get a better understanding of how this will affect your assets.

Your income:  If you are in a high income bracket you may not be eligible for Chapter 7.

Homeowners / Foreclosures:  Chapter 7 can temporarily stop foreclosure.  Unless you can get current on your mortgage, the foreclosure will eventually continue.

Eligibility:  Chapter 7 is available to those with income less than the median of their state, or if you can pas the means test.

Filing Complexity:  Filing Chapter 7 involves preparing a large set of forms and navigating some tricky legal issues.  Simple cases can be done pro se.  (PRO SE – without hiring an attorney)

For a free consultation call Regina Rose Hudson at www.bhambankruptcy.com.

Chapter 13

Basics:  You repay your creditors, some in full and some in part through a repayment plan set up through the court.

Time Frame: Payment plan lasts three or five years, depending on your income.  Many of your unsecured debts will be discharged at the end.

Property:  No property is liquidated under Chapter 13.

Your Income:  Chapter 13,  a regular income is required for making monthly payments.

Homeowners / Foreclosures:  This can stop a foreclosure and you can make up past due mortgage payments through your repayment plan.

Eligibilty:  Has no income requirement.  Unsecured debt has to be below $383,175 and secured debt below $1,149,525.

Filing Complexity:  Involves submitting a repayment plan to the court. Will almost always require an attorney to complete successfully.

BLOGS

First of all ReScore Solutions offers free credit report evaluations.  For us to provide this service you will need current credit reports.

Sign-up online.

You paid off a balance last summer and it still reports a balance.  Maybe there are  accounts that aren’t yours, addresses that you have never lived at, credit inquiries that you didn’t authorize, collections that you weren’t aware of and the list goes on.  We can possibly help you and get your credit cleaned up and raise your credit scores.

Here at ReScore Solutions credit report evaluations are free….yes, another free!  We want the opportunity to educate you in having a chance at better and stronger credit while educating you to keep it strong.  We don’t do gimmicks, nor do we have a magic wand to poof all kinds of accurate bad stuff from your reports, but we will explain what our services cover and how we can repair negative information and how our services can benefit you, for now, and your future.

We also specialize in assisting with all types of credit issues.  Possibly avoid

  • Bankruptcy
  • Foreclosure
  • Charge off accounts

We can assist with dealing with collections, as well as getting you lender-ready for a mortgage.  You may not have credit or collection issues and just need to build or rebuild credit.  There’s help for that too.  I know, you want to know how much will this cost you.  After all, you may be living on a budget and paying hundreds or a couple of thousand $$$ is not possible.  Fear not, we have low month to month payments and you can cancel or place you account inactive at any time.  We eat, sleep and obsess about credit related stuff.

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There are other companies that provide credit repair, but we go beyond with excellent customer service and educating our clients which means you can spend more time relaxing and with your family, while we take care of you.  Call today.  205-352-3448

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