There are three major essentials in life: Food, Clothing and Shelter. Without these three, no one lives a decent life. Without food, you die. Without decent clothing, you won’t be able to go out of the house in a presentable manner to work and keep feeding yourself. Without shelter, you’ll either live off the kindness of others, live as a squatter on other people’s property, or even as a hobo on the street. So you probably will do just about anything in order to find a place to stay, even trying to find someone to rent a home to you despite your bad credit.
The bad part about trying to rent when you have bad credit is that your potential landlord may not trust you enough. Thus, when it comes to finding a bad credit rental, the owner may either flat-out reject you or make you pay a premium on a security deposit. Neither of which will sound appealing to you.
So how do you go about renting your place with bad credit?
Look for rental places with no credit check required.
In this economy, some landlords may consider renting in spite of your bad credit to keep their rental properties occupied. Choosing these places, if you can find them, should be your last option as doing so may result in a vicious cycle.
Bite the bullet and pay the security deposit.
Sometimes, the only way that a landlord will agree to rent a place to a person with bad credit will be if there is a substantial security deposit paid. If you can afford the security deposit, then go for it.
If you can handle a higher rental fee, then go for it.
If your landlord is serious about a credit check and finds that you have bad credit, try and negotiate for a higher monthly fee. This way, he might consider relenting and allowing you to rent.
Consider having someone co-sign the apartment lease with you.
Another way that landlords will feel comfortable enough to rent a place to a person with bad credit will be when there is a guarantee that the rent will be paid even if the renter does default on the payments. Having a guarantor or co-signer may put your landlord’s mind at ease.
Consider moving in with your parents or with your relatives before trying to rent an apartment again.
The time you spend staying with your parents or with relatives will save you what you will otherwise pay on rent. It will also bide you the time to work on turning your credit status around. You could spend this time repaying credit card debt, if you need to. If you’re done paying back your credit card debt, spend this time managing a secured card properly. Having less expense, as in having no rent to pay, will allow you to manage the rest of your budget better, ensuring that you won’t incur new credit card debt.
Private landlords actually abound, and there are reports of these landlords not requiring a credit check. However, staying in the bad credit demographic will cost you so much: credit worthiness, opportunities to apply for loans that may give you the leverage you need, and possibly even a job. Even if you will be able to secure a home or an apartment to rent, bad credit is still going to be a pain for you in other areas of your life. Thus, it is still a good idea to work on neutralizing bad credit.
Neutralizing bad credit will take a while, but with patience and perseverance, you will be able to get back to black in due time. If you must, you may even use those countdown tickers that will help motivate you towards turning your credit from bad to good. Seeing your progress will encourage you to keep going, and before you know it, your bad credit rating may have already turned to a good credit standing. Think about the perks of being in the good credit group, the task may be monumental, but it will be worth it in the end.
Now that you know how bad credit affects you when renting a house, you have to be serious about getting back in the black and neutralizing bad credit. In the long run, it is going to be advantageous to you anyway.
Amy Johnson is an active finance blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances.
Image Credit: Shutterstock.com