Bad Credit Is A Bit Of An Illusion
What is “credit” really? It’s a score that basically means if you’re on the high end, you can get loans without as much collateral. If you’re on the low end, you still get loans, they’re just at incredibly high interest rates so the companies who make the loans earn their bottom line back. If you’ve got terrible credit, you’ve got to go outside conventional channels.
Here’s the thing: if you’re simply willing to live beneath your means, you never have to worry about credit. Why? Well, you’ve always got money in the bank, you don’t have any debt, and what purchases you can’t make outright can be strengthened by a co-signer on a loan. However, these things don’t do you much good if rental is denied for bad credit, do they?
In that situation, you’ve got other things to consider. Many who need to rent an apartment don’t have credit which passes the application process. What can you do to get around such difficulties? In this writing, we’ll briefly cover several alternatives to help you understand what you can do, and how best to contend with a low credit situation.
1. Pay More Up-Front And Monthly
Landlords have to make a profit. What they’re going to do, if they can, is protect their bottom line. This is why you have to pay the first month’s rent, last month’s rent, and a wear-and-tear deposit up front. At bare minimum, if you turn out to be a “lemon” for the landlord, they get two months’ good rent from you before they’ve got to list the unit again.
Well, if you’ve got bad credit, you can assuage the landlord’s fears by paying a larger deposit fee, larger rent, or maybe between three and four months up front. Some landlords will let you pay a year’s rent up front, which may allow you to get a decent price with bad credit on a unit. However, some landlords are leery of tenants like that.
If you’ve got bad credit through no fault of your own, you’ve got latitude should you have steady income and a bank account which can be used to demonstrate as much. All you’ve got to do is prove you make enough money to cover rent every month, and then some. Savvy landlords understand “credit” is nebulous, and credit reporting agencies make mistakes.
If you have perfect credit, then stop doing anything which builds or eliminates credit for about seven years, your credit score will reset—after all, in the eyes of the credit agencies, you could be dead! So they reset you, and you have no credit whatever. This can give you rental woes. A solid bank account shows you’re in good shape.
2. Get A Co-Signer
A co-signer takes some of the credit “burden”. The landlord has a legal document which binds them to pay your fees if you end up being unable to. Accordingly, they can rest easy that they’ll get the money necessary to keep them in business. This isn’t the most convenient option, but if you know somebody who has good credit and is willing, it may be wise.
3. Use Local Resource To Find Different Rental Alternatives
There are local resources designed specifically to help those with poor credit get a decent apartment. Look into these. Ask around. See if there are low-income housing options, or housing assistance solutions. Also, mainstream websites can offer all sorts of options for those with low credit—even top-tier apartments.
Dallas, TX is a city that’s doing well despite the absolutely unprecedented times in which we live. If you’ve got bad credit, there are still ways to get good living appointments here—just look at these downtown Dallas apartments; some of which even include high rises and lofts. You can get options here that match your desires even if your credit isn’t quite perfect.
4. Seek secondary Rental Situations
Not all landlords rent apartment units out of traditional apartment blocks. Did you know private home owners also sell such solutions? It’s true! You may be able to rent a room in a basement, or a room in an outbuilding on a property. Such landlords as those who are homeowners and just seeking to supplement income don’t always examine credit closely.
Finding Options That Fit Your Needs Despite The Situation
There are always options for renters with the money and diligence to seek until they find. Look into secondary rental situations, co-signers, paying more up front, and using local resources to expand the selection you’re able to examine. Bad credit can be hard, but it doesn’t have to be what keeps you from getting a roof over your head.