How to Rent a House With a Bad Credit Rating

Influence a landlord in your favor, even when your credit is bad.

It's the plight of most people with bad credit. They are often prohibited from renting a home because of a blemished credit report. Once a landlord contacts a credit bureau and learns that an applicant has a poor credit history, it may result in a refusal to rent. If this happens to you, there are several ways to overcome the problem.

Things You'll Need

• Credit report
• Letter from previous landlord
• Cosigner

Instructions

1. Obtain copies of your free credit report from TransUnion, Experian and Equifax by logging on to the Annual Credit Report website. Sometimes the reports will contain errors, such as damaging information about another person or a judgment against you that's not accurate. Have the credit bureaus expunge that information by using the dispute form that comes with each report. If they are able to validate your information, your credit score may be raised. Get more information by clicking on the link in the Resources section below.

2. Get a letter from your most recent landlord or lender stating that you have paid your rent or made your monthly mortgage payment on time. That will demonstrate to the prospective landlord that you are able to fulfill your monthly obligations. In addition, amass your most recent utility bills that show they also have been paid.

3. Put in writing any special circumstances surrounding a foreclosure or bankruptcy. For instance, if either was due to your having lost your job or a serious illness, you should state that.

4. Show your prospective landlord proof that you have saved money, if you have done so. A recent bank statement may prove that you will be able to pay the rent regardless of your bad credit.

5. Offer to make a security deposit that exceeds the amount normally required. Most often, a landlord requires a deposit of at lease a month to secure a lease. Be prepared to pay more than the amount required, if you can do so. If you leave the property in good condition, then you will have that deposit refunded at the end of the lease. In some cases, you may not have to do this if you can demonstrate that you have money in a savings account.

6. Find someone with good credit to cosign the lease, if none of the other strategies will satisfy a prospective landlord. If you fail to pay the monthly rent for some reason, the cosigner will be responsible for payment.

References

• FOX Business Network: How to rent a home with bad credit
• Annual Credit Report

Resources

• Bankrate: How to fix credit report errors