No Credit Check Apartment Options in the U.S.

Getting your first apartment can be tricky if you’re fresh out of college and just landed a new job. Why, you ask? Landlords run credit checks before leasing apartments for rent. If you have bad credit, that’s when you may lose out on your preferred apartment.

But the good news is you can still get similar apartments even when you have bad credit or no credit at all. In this article, we’ll explain everything you need to know about such apartments, known as No Credit Check Apartments.

Why Do Credit Checks Matter so Much for Rentals?

Credit checks matter because property owners need to ensure they are renting to a financially-stable person who can pay rent on a timely basis. So, when filling out forms, the landlord will explicitly ask you to submit a report detailing your credit history. You can get a copy of your credit report from major credit bureaus like Experian and Equifax.

The thing to note here is that the credit report is not the same as your credit score. The former is essentially a brief history of your credit health, how you have been doing financially. On the other hand, your credit score is simply a numeric value assigned by your financial institution based on varying factors. Both of them will come in handy.

How to Rent an Apartment Without Credit

If you do not have a credit history or do not want to provide it, you can still get an apartment. There are several ways you can make up for its absence. Some of which are:

Consider Using a Reference

If you have professional references or credentials, you can submit them to the landlord. These can be from your past employer, your professors, or coaches. If you don’t have any yet, you can ask them to write one, which will help develop trust with the landlord. Here is a detailed article on how you can choose a personal reference. 

Provide a Larger Security Deposit

When you offer a large sum upfront, usually one-quarter of the yearly amount, this helps to build trust with the landlord, and they will be more willing to rent to you. Also, if you miss a month’s payment in between (which you shouldn’t), the landlord probably wouldn’t mind that much. Three or four months of upfront payment is usually considered a large deposit.

Submit Your Proof of Income

This is by far the best tactic for developing trust with the property owner. When they see that you are consistently generating income, they will take a chance and rent to you even without a credit check. Payslips and bank account records are the best proof of income.

Rent Using a Cosigner

If the above ways are not in your favor, you can get help from colleagues, friends, family members, or someone who knows you well. Just like you would use a cosigner when applying for a loan or opening a bank account, you can use a cosigner to lease an apartment without providing a credit report. If you have trouble making the rent payments, your landlord could legally turn to the cosigner to recover your dues. It’s better if the cosigner has a good credit history. Read this article to learn more.

Rent With a Guarantor

Guarantors are different from cosigners. Guarantors are usually corporate entities who provide such support to people in need. Cosigners are more of a personal option, which not all people looking for apartments may have. A company will act as a guarantor by taking some calculated risk on your behalf and get you the apartment. But bear in mind, they don’t come for free and charge a fee per month. So, use them wisely. If you want to learn more about guarantors, here is a detailed explanation.

Provide Proof of Assets

Some landlords will value your assets more highly than your credit or income. These include saving accounts, recurring deposits, stock options, and the like. A landlord may decide to give you the apartment if you provide this information. The healthier the assets, the better.

Consider Moving in Immediately

No landlord likes to have an empty apartment. If you offer to move in within a few days, with an upfront, they might take the risk of not going through a credit check. If the owner is carrying the apartment at the expense of a mortgage or loan, then they will be more willing than someone who isn’t.

Rent Month-to-Month

Most apartments are leased for least a year. That means a landlord will find it hard to evict you if you default on your rental payments. But you can offer to rent on a short-term monthly basis. In this way, the owner will find it easy to replace you with someone else since there is no obligation in place.

Share With a Roommate

If you know someone who is looking for an apartment and has a good credit history, you can consider sharing the apartment. This will not only bring down your rental amount but also free you up from credit history requirements. But you might have to spend some time on drafting a document detailing terms and conditions of who will be paying what amount and for what duration.

Build Your Credit to Help With Rentals

Why look for alternatives when you can improve your credit? It isn’t as complex as it sounds. There are a few proven ways which you can use to improve your credit to help with your rentals.

Check Your Credit Score

Many people don’t know exactly what their credit score is. This is because it isn’t as easy as making a phone call and getting your credit score. You have to get in touch with credit bureaus and do some work. So, first, learn what your present credit score is before improving on it.

Set a Measurable Goal

When setting out to improve your credit score, you must know your end goal. For example, what kind of a credit score is good among landlords. You can do this by digging into lease agreements and getting in touch with property brokers. Usually, an average score of 600-650 is satisfactory for apartment rentals.

Use a Secured Line of Credit

You can apply for a second credit card that will act as a secured line of credit. Using this, you can pay an advance to the landlord. This will also help you to establish your credit quickly if you make your repayments on time. Here is a detailed guide on credit history and how you can work on it.

Get a Car Loan

A car loan is among the best ways to rebuild your credit. This indicates that you have the resources to make repayments on something as expensive as a car. You can apply with a cosigner to get things underway.

Make On-time Payments

This is needless to say. Nothing can save you if you miss out on your payments. Even worse, missing out will degrade your credit score further.

Track Your Credit

Now that you have started improving your credit score, you have to monitor it and ensure that it is moving in the right direction.

Conclusion

We are sure, using the ways mentioned above, you will be able to rent a no credit check apartment. What are your views on this? Let us know in the comments below.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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