Can You Rent an Apartment With Bad Credit?

The apartment rental process is tougher than ever. People tell horror stories about long lines at open houses and shady real estate agents, and that’s on top of how high rent prices are getting all across the United States.

So can you even rent an apartment with bad credit?

The answer: yes, but you may struggle getting approved for competitive apartments, and not all landlords will accept your application.

The average landlord or property management company does a credit check and is looking for applicants with good credit (the lowest number on a credit report that they'll take could be 650 or above for example).

While some apartments may accept your application with bad credit, it's important to get your credit score as high as you can to maximize your chances of getting accepted. Let's jump in!

Can you rent an apartment with bad credit?

Yes, you can rent an apartment with bad credit, but you'll likely be restricted to less ideal and less competitive apartments.

But even in more competitive situations, landlords may accept an application with bad credit if you have strong income, good rental history, or you agree to a higher security deposit, among other things.

For competitive apartments, landlords want to see good credit as well as strong income, good rental history, etc so that they can be more confident you'll pay your rent consistently.

This post on what credit score you should aim for to rent your dream apartment offers some clarity on what credit score you need in relation to the competition of the apartment you're looking at.

Tips for renting with bad credit

1. Be honest about your credit history

Honesty is always the best policy, especially when it comes to renting with poor credit or a less than awesome credit report. Be upfront about your credit history with any potential landlords so they are not surprised by what they see on your credit report.

Explain any circumstances that may have led to your current credit, such as medical bills, losing a job, or anything else. Providing that context on your personal finances and financial obligations can sometimes make a big difference in how your application is reviewed.

2. Consider a guarantor or co-signer

Your landlord will still want to know how they will get paid if you can’t make your monthly rent. If a renter or applicant has a bad credit history or credit issues, most landlords request that they get a guarantor before lease signing.

What is a guarantor though? It is someone who is legally required to pay the month's rent if you don’t. Some young renters, for example, might have a parent as their guarantor.

If you have a friend or family member with good credit, they might be able to co-sign the lease for you as well. Essentially, a co-signer will be on your lease agreement and agrees to take responsibility for the rent payments if you are unable to pay.

The differences between a guarantor and a cosigner can be confusing, so check out more info on Equifax if you’re curious.

Either strategy can add an additional layer of confidence your your potential landlord and boost your chances of being approved for the apartment.

3. Provide proof of income, reference letters, or other documents

Provide supporting documents whenever you can. Showing steady income is always important, so including pay stubs, bank statements, and letters of employment to a potential landlord help show you can pay your monthly rent.

Demonstrating a clean rental history, history of utility payments, or a great reference from a previous landlord can go a long way towards your approval odds.

4. Look for landlords who are flexible

Not all landlords or property management companies will do credit checks or look for the same things when trying to fill a rental property.

Some may be more willing to overlook low credit if you can stand out in other ways, like great utility payment history and clean rental payment history (making rental payments on time).

Keep an eye out for landlords who may be more flexible with their rental criteria!

Conclusion

Putting in a successful rental application and ultimately signing a lease with bad credit can be a challenge. But, by being proactive, honest, and resourceful, you can put yourself in the position to find a landlord who will work with you.

Whenever you rent an apartment and settle into a new place, you might want to think about improving your credit.

Some key tips are to pay your bills on time (avoiding late payments), keep your outstanding debts as low as possible, and check up on your credit regularly at the three major credit bureaus.

Also - once you’re in your new place, our Rent Reporting tool lets you build credit just by paying your rent on time. It only takes a few easy steps: