Once you go above 669, you’re in a pretty good spot. If you are below that 580 mark, don’t despair—with our guidance and the best credit repair in El Paso, we can help you qualify for an apartment.
Is it Possible to Rent With Bad Credit?
You can definitely still rent a home with poor credit or a low credit score. It is more challenging to do, but it is possible. Start with smaller steps, which we detail below, and then take action to repair your credit with credit repair services.
Credit and credit scores can feel complicated and overwhelming. In fact, in 2022, the average U.S. adult correctly answered only half of any financial literacy index questions they were asked. So you aren’t alone.
When credit scores were invented 200 years ago and later popularized in 1989, they were a tool for businesses to determine to whom they could safely extend credit. Today, when you are looking to rent, your landlord or property manager also uses credit scores to evaluate if they can trust you to pay rent on time. If you have a low score, you need to find another way to establish that trust.
Here are the ways you can make a case to potential landlords as you repair your credit:
Be Transparent About Any Issues
It can be an uncomfortable topic if you have bad credit because the last thing you want to do is talk about it. However, with the right presentation, transparency can go a long way in building a relationship with property managers.
Look presentable when meeting with landlords. No need for a three-piece suit, but you don’t want to be in leggings or ripped jeans either. Wear something casual, yet professional. Treat the process like a job interview and be the one to broach the subject of your credit. Explain how you’re handling your credit issues and how you are working to improve your score. If you have documentation that supports your efforts, bring it. Landlords will appreciate open communication and transparency, rather than you hiding or ignoring a potential problem.
Evidence of Responsibility
What documents should you bring? We recommend bringing proof of regular income (pay stubs are perfect) and employment, letters of recommendation (from past landlords, employers, roommates, or other credible sources), and proof of responsible rental history (bank statements or any other rent-payment receipts work).
Having poor credit does not mean you are irresponsible. Without evidence or an explanation though, property managers fill in the blanks themselves. If you have reliable evidence that speaks to your character and financial responsibility, that will go a long way.
Find a Cosigner or Roommate
If you come to realize you may not be able to afford the apartment by yourself or could fall behind on payments, consider a cosigner or roommate.
A cosigner is someone who agrees to be legally responsible for a debt if the borrower does not pay the owed amount as agreed. Your cosigner must be someone with good credit and a history of timely payments. These payments could be for a mortgage or rent. It can be challenging to get a cosigner because they assume all of the risks if you fail to pay rent, which would affect their credit.
A roommate is someone who shares the responsibility of rent payments and the upkeep of the apartment with you. You can look to join someone who already has an apartment and is looking for a roommate. This may work better for you because you can pay them directly and are less likely to undergo a credit check.
Pay a Higher Deposit
There’s a good chance that even if you have a cosigner or documents proving you’re responsible, the landlord may require you to pay a larger security deposit upfront.
Typically, this cost is equal to one month’s rent, but it may be more if you have poor credit. If you really want to win over your landlord, you can be the one to suggest paying a larger deposit as an act of good faith.
Moving Forward
Bad credit casts a cloud over every milestone in life, but you can improve your credit. The Phenix Group offers expert credit repair consultations that can help boost your credit. With professional advice from financial and legal experts, you will be on the path to a higher credit score!