When you have a low credit score, finding a place to rent can become a challenging task. Credit scores are used as a measure of financial responsibility and stability. Therefore, landlords and property managers use them to assess the ability of prospective renters to pay rent on time. If you have a credit score of 320 or lower, you may be wondering if you can still rent an apartment. This blog post will provide insight into your chances of renting an apartment with a 320 credit score.
1. Understand the Credit Score Concept
Before you start searching for apartments with a low credit score, it is essential to understand the principles of credit scores. A credit score is a three-digit number that indicates an individual’s creditworthiness. The credit score ranges from 300 to 850. A score of 320 is considered very poor, and it may indicate that the individual has a history of unpaid bills, bankruptcy, or foreclosures. While the credit score is not the only determining factor for renting an apartment, it plays a pretty significant role.
2. Negotiate and Offer More Cash Up Front
Usually applying cash to a problem helps. If you can pre-pay the rent for six months or agree to a larger security deposit, you might find a potential landlord more willing to work with you. You could also offer to trade some of your labor time as part of the deal.
3. Look for Apartments that Consider Low Credit Scores
Not all apartments have strict credit score requirements. Some landlords and property managers understand that individuals with low credit scores may be able to pay rent and are still responsible renters. Therefore, they consider other factors such as income, employment history, and rental history. You can research and find properties that specialize in working with renters with bad credit or no credit. These properties may require a higher security deposit than others, but it may be an excellent opportunity to establish a rental history and improve your credit.
4. Get a Co-Signer or Guarantor
If you have a low credit score, but you still want to rent an apartment with strict credit score requirements, you can consider getting a co-signer or guarantor. A co-signer is someone with a good credit score that agrees to take responsibility for the rent if you cannot make the payments. A guarantor serves as an insurance policy for the landlord or property manager, and they typically require a fee. Having a co-signer or guarantor will increase your chances of getting approved for an apartment, but it also means that the co-signer or guarantor will be responsible for the rent if you default.
5. Be Honest About Your Credit Score
Honesty is always the best policy when it comes to credit scores and rental applications. It may be tempting to lie about your credit score or hide it from the landlord or property manager, but it is not a good idea. Landlords and property managers can easily check your credit score from your social security number, past address or other information from your rental application. Dishonesty will almost certainly lead to the application being denied. You can explain your situation to the landlord or property manager and provide explanations for the low credit score. Being upfront and honest may be viewed positively by the landlord or property manager.
6. Improve Your Credit Score
Finally, if you are struggling to rent an apartment because of your credit score, the best course of action is to work on improving your credit score. Improving your credit score takes time, but it can be done. You can start by paying your bills on time, reducing your debts, and disputing any errors on your credit report. Over time, your credit score will increase, and you will have more options when it comes to renting an apartment.
So, Can you Get An Apartment With a 320 Credit Score?
Its possible, but it will take some work.
Renting an apartment with a low credit score can be a challenge, but it is not impossible. You can increase your chances by understanding the credit score concepts, applying more cash to the deal, looking for apartments that consider low credit scores, getting a co-signer or guarantor, being honest about your credit score, and improving your credit score. Remember that honesty and perseverance are key when it comes to renting an apartment. With time and hard work, you can improve your credit score and enjoy the freedom of renting your own place.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.