How to Rent Apartments with Bad Credit | Go Clean Credit

how to rent apartments with bad credit

A bad credit report can make renting an apartment more difficult. If you’re having trouble renting because of your credit history, here are a few options.

Know Your Credit Report

Consider reviewing your credit report often so you know what’s on it before they do. If there are errors in your report, you’ll want to dispute them. Be prepared to speak about anything that is still showing up when they run the credit check. Not sure where to start? Here are a few guides we’ve written that might help:

  1. How to Improve Your Credit Score in 30 Days
  2. What You Should Do About the Equifax Data Breach
  3. What Makes Up Your FICO Credit Score
  4. Why Is My Credit Score Not Going Up?

Consider Your Rent-to-Income Ratio

You can increase your chances of being approved by staying within your affordability range, or your rent-to-income ratio. Those who spend 35 percent of their annual income are considered to be in their affordability range. Staying within this range also shows you’re less likely to damage your credit later.

Find a Property ‘For Rent By Owner’

Property management companies typically have corporate rules and regulations for application approvals, with less flexibility. Someone renting their own property may consider your situation on a more personal level. When looking for a property to rent, consider asking upfront what the steps are for application approval. They may let you know whether or not a credit check is part of the process.

A few places to check for independent property owners would be Craigslist.org, Airbnb.com, Zillow.com, local news classifieds (digital listings or print), local magazines, and real estate agents. Even driving through the neighborhood you’d like to move to and checking for signs on the property is a great way to find local gems!

Offer the property owner incentives.

1) Be ready to move in right away.

A landlord may agree to take on the risk of renting to someone with a low credit score if you offer to move in quickly and show your financial stability.

2) Suggest a shorter-term lease.

One way to build trust with your landlord would be renting for only three to six months, first. Offering to rent short-term helps mitigate the property owners risk. This gives them an additional opportunity to consider renewing when the agreement is up.

3) Pay a larger security deposit, up front.

Another option — if you’ve saved up for your move — is to pay your first three or six months rent in advance. If you know your credit score isn’t ideal, start setting more money aside ahead of your current lease being up. Looking for a new place early will also help you gauge how much you may need in cash.

While this option may be a favorable incentive for the property owner, make sure you’ve researched your rights before agreeing to any amount since rental deposit caps exist in some states.

4) Show your income stability.

Remember when we mentioned your net rent-to-income ratio? Showing that you make three to four times the monthly rent will reflect in your favor. Your pay stubs give a property owner proof that you can afford the monthly rent payments. Two or three months of pay stubs proving your stable income is usually enough.

5) Set up autopay.

Setting up automatic payments from your bank account to the property owner offers further proof you are willing and able to pay the monthly rent on time. Prepare to have this conversation up front and ask your work ahead of time to provide an employment verification letter ensuring you qualify.

6) Find a Co-Signer.

Before considering this option, you may want to reflect on how your relationship with your co-signer could change if you ask them to pay your rent. Both you and the co-signer at risk of being sued if neither of you can make a payment. Co-signers, additionally, must have a history of good credit and of course be willing to take on this responsibility.

The benefit to this option is if you have insufficient credit the landlord has the guarantee of rent payments under any circumstance. Offering such a guarantee might convince the landlord to accept your rental application.

7) Offer former landlord references.

Consider providing your references, cover letter, and rental application to your future landlord. If you have former landlords, you’ve rented from where you’ve remained current on your rent, ask your landlords to highlight this in their letter.

Demonstrating your financial stability and responsibility should help convince a landlord to consider your application more seriously.

Be Honest

If you already know your credit report may not help your acceptance be upfront. Within the cover letter that you submit with your rental application, include explanations of any red flags and errors on your credit report. If you have additional documentation showing resolution or any progress you’ve made in repairing your score, consider including this as well.

The more options you offer, and the more candid you are about your situation, the more likely you will be to land the property as your new home. Being prepared will help you confidently deliver the facts to your potential landlord. Be prepared for the process to take a little longer than usual, but it’s not impossible to rent with bad credit if you’re honest and willing to be flexible.


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a one size fits all model and we tailor your needs to the right program. Help is just a free phone call away or you can fill out an appointment request. 

Contact Go Clean Credit to schedule a free consultation today.

Veteran Credit Repair | How It Works

veteran credit repair

Credit Repair, Credit Scores, and Loans

Whether you’re a civilian or military member, most lenders require a minimum credit score of 620 to 640 to receive approval on a loan. In this article, you’ll learn more about how credit works for veterans, potential loan options, and how to repair a credit score to meet your financial goals.

First, Research All of Your Options.

Before we dive into credit scores and how it works. Let’s talk about the potential uses of a credit score, acquiring a loan. Understanding all of your options when seeking a loan is key to getting the best deal possible. Even veterans with fantastic credit and a 20% down payment may benefit from comparison shopping between conventional and VA loans.

Federal Benefits — Personal or Business?

Interested in buying a home? Veterans are eligible for VA home loans, which often require no down payment, no mortgage insurance, and have flexible underwriting requirements. An excellent resource to look into is the Veterans Benefits Administration website.

Ready to start a business? There are also grants, loans, and business development programs backed by the U.S. Small Business Administration. Prospective entrepreneurs look into financing by searching the Small Business Administration’s Office of Veterans Business Development website.

Assess Your Finances.

Consider all factors beyond your status as a veteran when making money decisions. The right choice for you will align with your current financial situation and goals. What are your financial plans for the next 6 months to a year? What financial habits are you looking to strengthen or stop? Make sure you’re financial goals and habits are leading you in the right direction.

Understanding Your Credit Score.

Part of assessing your financial plan includes reviewing your current credit score. The Fair, Isaacs Corporation, also known as FICO, created an algorithm for all three major credit agencies to use when calculating credit scores. This method creates your credit score by reviewing five different categories, with each category weighted.  See below for details:

veteran credit repair credit score

Credit Score Categories — Let’s Talk About Payment History.

Your payment history affects your credit score the most out of all other areas. The scoring algorithm determines if the borrower’s payments were on time and if they weren’t, how late they were. Late payments are categorized by more than 30 days late, more than 60 and more than 90. For each category, the algorithm drops the score more.

Where Does Available Credit Come In?

Your available credit is determined based on the number of outstanding credit accounts you have compared to the credit limit assigned to each account. The ideal amount of credit to use is around 30 percent of any credit limit. Scores typically improve when having a balance around this percentage. However, if an account has a zero balance, it will have little impact on your score.

Keep in mind, having a balance of more than 30 percent will result in your credit score falling.

Quick Credit Repair Options

The quickest way to repair credit scores is to focus on available credit and payment history. Make sure credit payments are consistently on time or paid no later than 30 days past due. Paying outstanding credit balances down to 30 percent of the available credit will help, too.

 


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a one size fits all model and we tailor your needs to the right program. Help is just a free phone call away or you can fill out an appointment request. 

Contact Go Clean Credit to schedule a free consultation today.

Equifax Data Breach Class-Action Lawsuits | Congress Repeals Rule

 Equifax data breach class action lawsuits

Class-Action Lawsuits Against Equifax

This last week, you may have heard the Senate voted to block consumers from suing Equifax as a class. There were approximately 143 million people whose personal information exposed during the data breach. And have already been more than two dozen lawsuits in federal court against Equifax.

In response to the data breach, the Consumer Financial Protection Bureau (CFPB) presented a rule barring the use of forced arbitration and restored the ability of people to file group lawsuits. The rule prevented financial companies that bind users by arbitration agreements from prohibiting those users from suing as a class.

According to news sources, Vice President Mike Pence had the tie-breaking vote to repeal the rule that could have made it easier for Americans to sue banks and credit card companies overall. Senators passed the measure to repeal by a vote of 51-50.

How To Protect Yourself From A Data Breach

While class-action lawsuits may be out of the picture, there are still a few ways you can protect yourself from suspected identity theft and future identity theft.

Credit Monitoring

Equifax data breach class action lawsuits

Consider signing up for credit monitoring if you do not already have it! You’ll receive alerts if there are any changes to your credit. We usually recommend this site, which monitors all three credit bureaus.

Once you begin receiving credit updates, you’ll be able to monitor for any suspicious activity being reported.  When signing up for credit monitoring check for trial periods and cancellation requirements to avoid unexpected fees and limitations.

Place a Security Freeze on your Credit Report

Equifax data breach class action lawsuits

A security freeze on your credit report helps prevent accounts from being opened in your name. All new accounts requested will be declined, and you will only be able to work with your current creditors.

You can place a “freeze” on your credit file by contacting each credit reporting company.

Fraud Alerts

Equifax data breach class action lawsuits

When you suspect your credit may have been compromised a fraud alert lets creditors and lenders know, this lasts up to 90 days. It’s something to consider when looking to protect your identity. It can also help prevent future theft.

To add a fraud alert, you’ll want to contact each bureau below by phone or online to each of your credit files.

Once you’ve placed an alert with one of the credit reporting agencies, they are required to tell the other two. They’ll ask that you provide your phone number in the event a credit request comes through during the 90-day timeframe. Setting up an initial fraud alert is a free way to provide you with added protection.

Extended fraud alerts are another form of protection to consider and lasts up to seven years. It requires creditors to contact you through the phone number, or another contact method you designate, to verify you’re the person making a credit request.

Contact us immediately if there is any new activity you don’t recognize or with any questions on how to protect yourself further.

 

News Sources: Tech Crunch | Yahoo! Finance | Reuters | CNN | GPO


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a one size fits all model and we tailor your needs to the right program. Help is just a free phone call away or you can fill out an appointment request. 

Contact Go Clean Credit to schedule a free consultation today.