The significance of credit scores for renting a room can’t be stressed enough. Many landlords reject applications from potential tenants who have questionable credit scores, regardless of their income and good rental background. On the other hand, some look for other rent-related issues or past eviction records of tenants.
So, while it may be challenging for you to find a room for rent with a low credit score, there are ways you can consider to find what you’re looking for. To prevent you from feeling like you don’t have a way out, we’ve put together a list of eight things you can do to get the perfect rental room.
1. Be aware of your credit report results
Before you even begin the room-hunting process, it might be wise to run a credit check for yourself. You can request credit reports from all three credit bureaus, TransUnion, Experian, and Equifax, since your landlord might use any of them to acquire your credit report.
Give your report a thorough read and look for discrepancies. Should you find any, raise a credit report dispute and have the agencies remove the errors. Fewer errors in your report indicate a better score and a higher likelihood of being shortlisted by prospective landlords.
Many times, situations outside your grasp, such as job loss, piling medical expenses, and so on, lead to a dire financial crunch. In such instances, it’s always a good idea to be open with your landlord and share need-to-know details of your story in a letter. You never know; your landlord might appreciate your honesty and consider you among the top potential applicants.
2. Find property owners who don’t check credit
With your credit score being an issue, you need to find landlords who don’t give credit checks that much importance. Generally, prominent property-management companies make it part of their policy to run credit checks on all applicants, so your application won’t be considered if you have a low score.
The more pertinent question to consider is where you’re likely to find landlords who don’t run credit checks or those who’re willing to overlook your credit score, provided you have a strong rental background and a considerable income. A few ways you could find individual landlords are:
- Look through Craigslist: At one point, the portal contained hordes of listings of rental properties owned by individual landlords. But now, you get to see multiple listings posted by individual property owners and property management companies. So, you might have to browse through a lot of irrelevant information before you find what you’re looking for.
- Check with a real estate agent: Get hold of a real estate agent to help you find a room for rent. Individual homeowners use the services of real estate agents to look for potential tenants and dish out a commission for them when they find someone worthwhile.
- Look through newspaper classifieds: Classifieds in newspapers are another place to find rental listings by individual landlords, especially on Sundays when the papers are inundated with advertisements. Most newspaper companies have websites as well, so you can check them online if you’re not in town.
3. Obtain a reference letter
A reference letter from someone who can validate your financial soundness is a great way to win over a potential landlord. Connect with your employers and landlords, past and present, or your bank, and request them for a recommendation letter that states that your payments were always timely and that you have an impeccable payment history.
You may want to remember that if you have any pending payments to previous landlords or other businesses, your application’s likely to be turned down. If these payments show up on your credit report, your first order of business would be to pay them in full and request the companies you owed money to, to share a statement highlighting your payment history with them.
4. Show proof of income
Regardless of your unstable credit history, if you’re able to show landlords evidence of your substantial income, you may be able to convince them to consider you. Remember, landlords have expectations about how much salary you need to make to be a prospective tenant. So, ensure that you earn around three to four times the rent asked for. This serves two purposes: one, the landlord’s conditions are met, and two, it proves your ability to pay the monthly rent.
So, how do you prove your income? Getting hold of the following documents should do the trick:
- Tax returns filing document
- Letter from employer validating your income and employment status
- Pay stubs for the past two or three months
5. Expect or offer to pay more
Regardless of the outcome of your credit report with your landlord, you might need to pay more either in terms of the fixed deposit or the monthly rent. In any case, it might be a great idea to offer to pay your landlord more so that any traces of doubt about your paying abilities disappear into thin air!
So, either agree to pay rent for one to three months or a higher security deposit. Another equally excellent option is to set up an automatic payment system where the monthly rent is transferred from your account directly into your landlord’s account. That way, they don’t have to feel like they need to wait outside your door every month to remind you to pay up.
6. Request help from a co-signer
In spite of everything you’ve tried, if your landlord is still skeptical about your financial abilities, think about getting a co-signer or guarantor. This individual signs the lease with you and becomes your financial backup. They pay the rent in instances where you miss it for various reasons.
In cases where a potential tenant needs to find a co-signer, they usually look for a family member or friend who they can trust with their lives. While you may have a source of financial support, it’s a substantial risk for them, so consider getting a co-signer only in dire situations. Needless to say, they have high credit scores.
7. Better your credit score
Although you might get lucky and find a rental room at the apartments for rent in Charleston with an understanding landlord, make it your goal to improve your credit score for the future. You can do the following things to ensure your credit’s back on track:
- Pay your rent timely every month.
- Pay off all your bills that are past due.
- Keep an eye on your credit report: Request it from each of the three credit bureaus yearly.
8. Get a roommate
Getting a roommate can solve a lot of problems. For instance, some landlords require only one person to sign the lease, so in such a situation, it makes more sense for your roommate, who has a better credit history, to sign it.
Another option you can consider is sharing space with someone who has a lease in their name. That way, you get to avoid going through a credit check. Also, having a roommate gives you the perfect opportunity to save money because your rent and utilities get halved. You can use the savings to pay off your debts and make way for a better credit score over time!
Still worried about whether you’ll find your ideal rental room? While it’s natural to be concerned about a low credit score and its effects, there’s no need to panic because, as you can see, there are several steps you can take to get what you want. Go through the information carefully and reflect on whether you can use any one or a number of ideas here to find the desired rental.
