Can You Rent An Apartment With No Credit History?
We’ll answer that question and offer some tips on how to deal with such a situation.
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Have you called an apartment complex recently to ask if you could rent a unit? If so, they probably listed what’s required to become a tenant. What’s one of the most standard requirements to rent? Passing a credit check, which can be a problem if you’re starting and have no credit history. But before you give up, keep reading, as we’ll offer you some clarity on this common problem.
Renting Without Credit History
Landlords want to know a prospective tenant’s credit history for one main reason: To gain peace of mind. They want a clear picture of how you are as a renter and whether you can pay on time. If your credit history shows a lack of timely payments, you present a risk. And this could cause a landlord to reject your application. But if you have zero history to look at, a landlord can’t tell if you’d be a good or bad tenant, which is why you’ll need to work a bit harder.
To answer the question of if you can rent an apartment with no credit history, the answer is yes. To do so, however, you’ll need to offer other forms of peace of mind to reduce the landlord’s risk, such as these:
Ways to Overcome No Credit History
Get a Co-Signer
We begin with the easiest way to gain approval with no credit, although you’ll be using someone else’s credit in this case. A co-signer is someone who signs the contract and is liable for the rent. In exchange, you promise to pay the rent on time, so you do not ruin their credit history.
As you can imagine, getting someone to co-sign for you can be difficult. That’s why many people use family and friends for this favor.
If you do get a co-signer, be sure to pay the rent on time. If you don’t, you will damage their credit history and cause issues for them financially, which could damage your relationship.
Get a Roommate
While a co-signer may not live with you, a roommate will, making them more likely to say yes to such a situation. Again, having a roommate on the lease will require paying your portion of the rent on time. If not, you will ruin their credit.
Show You Make Sufficient Income
If you can show that you make 2.5 times the monthly rent or more with W2 forms, bank statements, pay stubs, etc., a landlord may approve your application despite no credit history.
Pay Several Months Up Front
Cash is king, and it could help you overcome a nonexistent credit history. Offer a larger security deposit or multiple months of rent to the landlord before moving in, and that could give them the peace of mind they need to say yes.
Submit a Personal Letter
Depending on the market, a landlord may receive several rent applications. If yours shows no credit history, it may get tossed in the trash. Add a personal letter with references, though, and the landlord may be willing to give you a shot.
Do a Quick Move-In
Sometimes landlords need instant cash and can’t afford to have an empty property. You could use this to your advantage by offering to move in instantly, which could fulfill their cash needs instead of waiting for a long-term tenant with perfect credit.
Sign a Month-to-Month Lease
If the market is slow, a landlord may be willing to approve you on a month-to-month basis. Pay the rent on time for the first few months, and they may see that you’re trustworthy enough for a long-term lease.
Avoid Large Companies
A large company with property managers will probably not be flexible with their renting requirements, which often include credit checks. Smaller landlords, however, may be willing to take a chance on you.