Dealing With a Poor Credit Report

When property managers are deciding if you’re a strong applicant, one of the first things they check is your credit score, the three-digit number created from the information in your credit report. You’re entitled to a free copy of your credit report each year. Typically a credit score between 650-699 is considered fair, 600-649 poor, and below 600 bad.

If you have bad credit because of a past eviction, you might be able to get the eviction removed from your history. If your score is low because you haven’t started building a credit history yet or you have a history of unpaid bills, here are a few places to start:

Selective listings

Finding no credit check apartments or other rentals can be challenging. Some listings will note they are no-check, meaning the manager won’t run your credit score. You may only need proof of income or you might need to pay a higher deposit.

Another strategy is to focus on small, privately owned apartment complexes, townhomes or single family houses. Landlords of these rentals may not check credit scores, or they may be willing to take into account the reasons your score is low (medical bills or foreclosure, for example). When you call to ask about a rental, ask if a credit check is mandatory and if they have a minimum score. Have a letter ready that explains your situation, and be ready to answer questions if you get an interview.

Improve your score

It’s not a quick fix, but paying down debt where you can will improve your credit score and improve your ability to rent down the road. Another key is to pay your recurring bills (utilities, credit cards) or pay rent on time. If you’ve been working on improving your financial picture, submit a letter along with your rental app that explains the reason for your bad credit and shows that you've been working hard to improve your credit score.

Pay a brokerage

A rental brokerage service might be able to help. The downside, of course, is that you have to pay a fee for those services.

Find a co-signer

A property manager might consider renting to you if you have a responsible co-signer who acts as a guarantor, meaning he or she will pay your rent if you can’t. You could also offer a larger deposit upfront or become a subtenant in a rental that is already occupied.