Whether you are going to buy or rent an apartment in the United States, it will be difficult to do without credit, but not impossible. Financial health is essential to have a good credit score. And it is that practices such as following a monthly budget, avoiding unnecessary purchases or expenses, investing in highly profitable projects and paying all debts on time have their rewards. But nevertheless, Obtaining a good credit history is not an easy task.. Otherwise, many would have it.
If you are one of the people who does not have the best credit history and that is clouding your goal of get the house of your dreams, do not despair! We will give you several ways to get the approval you want so badly for you to move as soon as possible.
- 1 7 ways to get the apartment of your dreams without credit
- 1.1 #1 Choose a single owner apartment
- 1.2 #2 Check that your income is stable
- 1.3 #3 Offer to pay a few months in advance or increase the security deposit
- 1.4 #4 Talk about your plans to move right away
- 1.5 #5 Offer to sign a rental contract for short periods
- 1.6 #6 Give him some letters of reference
- 1.7 #7 If all else fails, get a roommate!
7 ways to get the apartment of your dreams without credit
We all agree that having a good credit score is like a key that opens the doors of opportunity, and this not only includes a lower APR for the credit card, loans with attractive interest rates, a good telephone contract, among others. Having good credit to get an apartment also matters.
Surely, you have already heard this statement hundreds of times and although it is not false, yes there are alternative ways to get a good place to live. You could, for example, offer personal and work references, show a statement of your bank account or negotiate with the landlord for a higher deposit.
There are many ways, but we will try to focus on these for now:
#1 Choose a single owner apartment
Most rental apartments are managed by housing complexes or property management companies. What’s wrong with that? Nothing, but dealing with these types of companies when you have bad credit – or no credit history – is quite difficult. Why? Mainly, because they always ask for a credit check to keep its clients -and their properties- safe and free from all risks.
However, there is always a solution in sight and, in this case, it is to deal directly with the owner of 100% of the property. The landlord will put aside the credit check and focus on other aspects that he considers important, such as checking if you have a stable income, if the rental price is within your budget and if you have any previous references.
This would not only allow you to rent a good apartment easily, quickly and without complications: you could even get a property in a better area or a higher price.
#2 Check that your income is stable
The first point leads us to the second. And it is useless to speak directly with the owner if you have no way of check that you have a stable source of income. Think that this is your entry ticket to your new home, since with it you would show the other party that what you earn month after month is enough to pay the rent without complications.
Ideally, your income should cover -without a doubt- the rent. To do this, it is recommended that you choose a rental fee that remains below a third of your net salary. For example, if you earn $6,000 a month, you should consider apartments that are renting for less than $2,000 a month.
What else can you do to live where you’ve always wanted? Accompany proof of income with a statement of your savings account and other liquid investments. Demonstrating that you have financial stability could make the difference in the negotiation. How much are we talking about? It would be advisable that you have at least 3-6 months equivalent to the monthly fee as savings.
#3 Offer to pay a few months in advance or increase the security deposit
One of the ways you can show the owner that you are a serious and responsible person is negotiate with him the payment of months in advance. For example, you could offer that, with the signing of the contract, you receive a payment equivalent to 2-3 months of rent. Thus, you will reduce the perception of risk that it may have about you. If you opt for this option, don’t forget to add it to the contract! Only in this way will the months of payment in advance be calculated for the following months.
If you don’t want to pay in advance because it doesn’t seem like the best alternative, don’t worry! We still have an ace up our sleeve. You might consider telling the landlord that you are willing to pay a higher security deposit. For example, if he asks for three months as a guarantee, offer four, five or six; depending on how your finances are.
#4 Talk about your plans to move right away
Landlords do not make money with an empty apartment. Think they have to pay the mortgage, maintenance, utilities, etc. All these expenses will come out of your pocket until you find the perfect tenant.
Because, if you tell him about your plans to move right away, he might not want to think twice before choosing you. Especially if the area you want to live in is of low demand or if the apartment needs remodeling or repairs. This could be your ticket to an apartment with no credit.
#5 Offer to sign a rental contract for short periods
If all else fails, a short-term rental agreement could be the solution. You can tell him that you wouldn’t mind renewing the lease every three months until he’s comfortable with having you as a tenant. This will allow you to be punctual in your payments and build a good relationship with the landlord..
#6 Give him some letters of reference
You are a charming person, there is no doubt about that; but the owner does not know. Prove your points in favor by giving him some reference letters. You can use personal references, former employers, work, professors or teachers. Even if you have already co-signed a rental agreement, you could use it to prove that you are a person who fulfills your commitments and that you are responsible when it comes to money.
These letters of reference can be the perfect way to show the landlord that you will be a good tenant and possibly turn the chessboard in your favor.
#7 If all else fails, get a roommate!
And when we talk about a roommate, we refer to someone to sign the rental agreement with you. Since you want to get an apartment with no credit, this person must have good credit and a stable source of income. If you don’t get a roommate, you could ask someone in your family or a friend to sign the contract with you.
If you try any of these options and manage to move into your new apartment, congratulations! This will help you build your credit history from scratch.