Your Guide To No Credit Check Apartments
There’s no doubt that finding a no credit check apartment can be a difficult process.
Recent surveys show that around 20% of scorable consumers fell under the 599 threshold in FICO’s credit scoring model, representing a vast number of consumers with poor credit.
There are several reasons why people end up with poor credit, including unique times of hardship or falling into poor financial habits. Regardless of the reason, it can take a long time to work your way back up to good credit.
Of course, if you’re looking for an apartment, you may not have that kind of time to sacrifice. Before you go out Google searching “no credit check apartments near me,” come with us as we give you a couple of helpful pointers to make your apartment search as efficient and effective as we possibly can.
We understand that having poor credit can be a burden on your life in many ways. Unfortunately, the burden of renting with poor credit is one that many consumers often ignore.
So, the true question is,
How do we factor no-credit-check apartments into the general conversation?
Well, we know that most apartment rentals require some form of credit check. If you look at it from the perspective of a landlord, they want a tenant that will pay on time each month because they know they are fiscally responsible. Good credit is a sign of positive financial history.
Of course, from the perspective of a tenant, trying to achieve good credit before renting an apartment can feel like a major obstacle, one that is almost impossible to overcome. The good thing is, there are plenty of quality apartments and rental homes that can deal with the issue of poor credit.
Here is all you need to know about finding them.
What Are No-Credit-Check Apartments?
Before we dive in and explore how to obtain a no-credit-apartments, let’s make sure you understand exactly what you’re looking for.
No-credit-check apartments are rental units that do not require a credit check as part of the application process. Compared to the traditional process of renting an apartment, wherein a landlord or management company will run a credit check on you, this type of approach to renting is very different.
Now, theoretically, any apartment or rental home could be a “no-credit-check rental.” Of course, if you’re trying to find a luxury rental unit that doesn’t require a credit check, you’ll lilkey have a much harder time. Most of these types of rentals are in high-demand, meaning you’ll usually be pit against other prospective tenants with great credit scores and credit histories.
It is important to understand the many risks involved with looking for no-credit-check apartments as well. Sometimes, a landlord will forego the credit check process because they are desperate to fill the space. In other cases, a no-credit-check apartments might be that way because it is undesirable.
In the worst cases, these apartments are scams.
Why Do Landlords Perform Credit Checks?
Many people ask the question,
Why in the world must landlords perform credit checks in the first place?
Well, the primary goal of the tenant-screening process is to make sure a landlord or property management company can find a tenant that will pay the full amount of rent each month on time. A credit check is a wonderful determining factor for landlords, as it gives them an insight into your past financial history and your current financial debt.
It’s important to note that a credit check does not provide your potential landlord with financial information. It will not show them how much money is currently in your bank account or how much money your earn annually.
Instead, a credit report will give them information as to whether or not you have a history of paying your debts off on time or managing your finances responsibly. A credit report will also give your landlord access to your credit scores from the three major credit bureaus, your proven history of paying debts off on time, and more.
If your credit report shows that you have a history of missing or being late with payments, you will likey not get that rental.
The logic here isn’t complex at all.
Understanding Your Resources For Finding No Credit Check Apartments
If you’re looking for no-credit-check apartments, it’s important to understand what resources to check first.
Smaller, Privately-Owned Apartment Complexes
The first type of property you’ll want to look at is privately-owned property. More often than not, large properties run by complex management companies have policies in place to determine which renters are the best fit. This likely means that you’ll need to meet the minimum credit requirement to move in.
Whether you live in Los Angeles, New York, or anywhere in-between, it’s a good idea to look at smaller, privately-owned apartment complexes. The beauty of these complexes is that you can also use your personal leverage when applying.
Search Online
There are SO many platforms online that can help you find the ideal no-credit-check apartments. Even a quick Craigslist search can get you in touch with landlords that own these apartments, as they often have their contact information available.
Of course, you’ll likely find a wide range of no-credit-check properties available. One of the main issues that people run into is the lease lengths on these properties. Often, landlords want tenants who will stay for a year at least, which is why they get them to sign yearly contracts. If you are someone who travels often or is contracted for work in a specific area for less than a year, you’ll also have the obstacle of finding a no-credit-check apartments without a year lease.
Guerilla Style
Beyond the World Wide Web, there are many other resources out there for connecting those looking for no-credit-check apartments to professionals that can help them find the housing they need. From classified sections in the local newspaper to real estate agents, you have your options.
You may also call your local government office and see if they have any programs in place for people that have poor credit. Often, local governments have programs in place that can meet the needs of people looking for housing.
Find the Right Housing Provider
Because it can be difficult to find the right housing if you have poor credit, your best bet is to work with an established housing provider. For example, Anchor Your Assets caters to many different kinds of people with poor credit, helping them find the right housing in their particular city.
They have access to a host of apartments across the country, which offer flexibility in terms of credit. You can even find premium apartments with high-end amenities that you may have trouble finding on your own.
With such a strong community of tenants that the company works with, they understand what it means to provide high-quality apartments to meet the needs and preferences of everyday people, all without succumbing to the common roadblock that is credit.
The Struggles of Finding a No-Credit Check Apartment
Looking at credit scores is a standard, industry-wide policy to measure the suitability of a tenant applying for an apartment. Similar to the way a bank looks at credit when you attempt to take out a loan, a landlord or management company wants to see whether or not a prospective tenant will make their housing relationship worthwhile.
For this reason, the credit qualification factor is one of the top factors.
Of course, it’s important that we mention the fact that no-credit-check apartments are not only for those who have had a history of financial hardship. There are many examples of people who have the necessary funds to afford the monthly rent, though they simply don’t have the credit to demonstrate their capabilities.
Some of the most common examples of these types of people include:
- Recent graduates or former students who are relocating to another city to obtain a job and do not have a history of credit
- Foreigners moving to the United States for the first time without an established credit history.
- Young people who have not had the time to establish a credit history yet.
It’s also important to note that some places will have higher credit requirements than others. For example, Los Angles will likely have higher credit requirements than Cleveland, simply because it is a more competitive market.
Now, that does not mean there are any set standards in place, which is why it’s more than possible to find a place in any city that accepts poor credit scores. It’s best to find a no-credit-check apartments, however, as these types of apartments are made to circumvent the issue of poor credit entirely.
If you are unable to find a no-credit-check apartments or you simply can’t find one that you love, there are a few alternative methods to getting around this issue.
Renting an Apartment With No Credit or Poor Credit
Get a Cosigner
Most property owners will find it sufficient enough if the prospective tenant can get a friend or family member with good credit to cosign with them. Of course, you must understand that the cosigner will be responsible for your financial burden if you are unable to make your rent payments.
For this reason, it is important that you AND your cosigner put some serious thought into whether or not that kind of relationship is a good idea.
The good thing about this method is that you can remove your cosigner or lease guarantor once you improve your credit score. When and if this happens, you may have to draft up a new lease agreement with your landlord or management company.
Use Quality References
Whether or not you get a cosigner, having strong references to back your character up is of the utmost importance. With strong references, you can show a landlord or management company that you are financially responsible. Some of the best references you can use include past landlords or current/past employers.
Plus, if the reason you have poor credit is something beyond your control, such as you could not work because you were sick or injured, a landlord or employer will be able to back your story up.
Provide a Larger Security Deposit
Landlords will often collect security deposits so they can offset the costs of potential property damage, key replacements, cleanings, and missed rent payments. More often than not, this security deposit will be equal to a month’s worth of rent. There are many states, however, which allow landlords to collect even more.
It’s important to look at your state’s laws to see if it is possible for you to provide a higher security deposit to your landlord. The beauty is that as long as you pay your rent on time, respect your property, and don’t cause any damage, you’ll get the full deposit back when you leave.
When you offer your landlord a larger security deposit upfront, you show them that you’re taking the idea of renting their unit seriously. You aren’t afraid to lay your money on the line and it shows. Remember, being a landlord is a business decision. Anyone who owns property wants to make money from it. You’re simply making that easier for them .
Provide Proof of Income
One of the best ways to convince your prospective landlord that you’ll be able to pay your rent on time each month is by showing them your proof of income. Having bank statements that show how much you make each month can demonstrate your good financial standing and your ability to pay rent on time.
The golden rule for most landlords is they want a tenant who can pay at least three times the cost of rent every month. For example, if you are looking to rent an apartment that is $1,200 each month, you’ll want to show your landlord that you make at least $3,600 each month.
To show proof of income, you can use bank account statement, tax filings, and pay stubs, as these are all viable forms of proof.
Rent With Someone Who Has a Good Credit Score
Beyond the reduced rent rate, there are many benefits to renting with roomate. Of course, the luckiest tenant has a roommate with great credit. If you can show your potential landlord that the roommate you’re planning to rent with has great credit, they may be more willing to rent to you.
Having a roommate with good credit can lower your rent burden and indicate to the landlord that you’ll have an easy time paying for rent each month. In a way, your roommate will become your informal cosigner.
Of couse, because both of you are on the lease, you will both be responsible for covering rent costs. However, if something happens and you are unable to pay, you can ask your roommate to step up and cover the costs, offering to pay them back later.
Improve Your Credit Slowly
While many companies claim to improve your credit score overnight, you’re never going to see any radical changes in the course of a day. However, if you can show your potential landlord or management company that you are on an upward trajectory with your credit, it can be enough to convince them of your financial responsibility.
To improve your credit, the first thing you need to do is make sure that you pay all of your bills off on time. You’ll also want to make sure that you don’t add any new forms of debt to your list while you’re hunting for an apartment.
As we said before, some prospective tenants will provide a larger deposit as a form of collateral, which can help the situation. More often than not, it takes anywhere from 24 to 72 hours for a landlord or apartment management company to process credit checks.
You want to make everything as succinct and simple for them as possible. The last thing a landlord or management company wants to do is sift through hours of clerical documentation that you sent in as proof of your reliability as a tenant. This is especially true if you’re looking for an apartment in a competitive market.
Partner With the Right Housing Provider
Your best bet might be looking for a housing provider, such as Anchor Your Assets, that can assist you in finding the right no-credit-check apartments for your needs. If you choose to make your apartment hunt a solo operation, you must be prepared to be candid about your credit score, letting them know why it is low and what you are doing to make improvements.
Final Thoughts
Renting an apartment with a low credit score or no credit score at all can be challenging. However, that does not mean that it’s impossible. With no-credit-check apartments, there’s no reason to take a risk.
Find the right team that can help you secure the apartment of your dreams without having to worry about your credit acting as a barrier to entry. Good luck and happy hunting for apartments!