How to Rent a House With Bad Credit & a Felony

Poor credit can affect interest rates on loans and mortgages, it can affect the type of employment you are offered, and it can also affect the type of housing you can obtain. Many landlords require their tenants to undergo a credit check. These checks help prospective landlords avoid frustrating and legally tense evictions. If you do have bad credit, you can rent a house, but you'll need to take the right steps.

Things You'll Need

• Copy of credit report

Instructions

1. Pull a copy of your credit report. Visit the government-mandated site, www.annualcreditreport.com. This site will give you a free copy of your credit report. You should also purchase a copy of your credit score, or FICO score. Your credit may not be as bad as you think. Scores above 720 are excellent but scores below the 600 threshold are poor.

2. Fix any credit problems that can be solved almost immediately. These include: paying off delinquent accounts (like collections) and bringing current any account currently overdue.

3. Research homes for rent. If you plan on renting out an entire home, you should attempt to secure a roommate as he may have better credit. Search local classifieds as well as online classified, such as www.craigslist.com. Search first for the amenities, space, rooms, bathrooms, and rent you are looking for.

4. Limit this search to prospective landlords who do not conduct a criminal background check. Usually only landlords renting homes with a high value and furnished with expensive assets will conduct a criminal background check. You'll be unable to pass any criminal check, so you'll need to avoid all prospective homes that include this.

5. Limit the number of potential house options by those who either do not require a credit check or who only require one party to submit to a credit check. Fill out applications with these prospective landlords.

6. Find a co-signer if you do not have roommate willing to submit to a credit check. Remember that a co-signer will need to sign the lease agreement, too. Common co-signers include good friends and family members.

References

• MSN: Risks and Advantages of Rent to Own
• Bankrate: Co-Signer has Few Loan Options