Having bad credit can be a major problem in many ways. Most people will be aware that if your credit history is not great, then getting any new credit in the form of a loan or a new credit card can be very difficult, not to say impossible. But bad credit impacts on other areas too. Did you know for instance that if you are looking to rent a new apartment or house the landlord will almost certainly expect a credit check to be done on prospective tenants and if yours returns a history of poor credit, you are unlikely to get the property you wanted.
It can be a vicious circle, so how can you address the problem? Here are our top tips:
If you see a property you like, to to get in touch with the landlord directly and explain the background. Assuming you are working hard to try to get your credit score back on track, you will need tobe able to demonstrate this to the landlord, who will then hopefully be prepared to recognise that you are actively addressing the issue and be prepared to view your application more sympathetically
If you have rented property, before make sure that you have paid all rental payments and utilities bills. If necessary ask your former landlord for a letter or certificate to this effect which you can then pass on as a sort of reference to your new prospective landlord.
Any new landlord will be looking for indications that you are able and willing to meet the rental payments as they fall due. Make sure that you show a prospective new landlord evidence that you are in full-time employment, together with details of your salary, so that the landlord can see that you are able to afford the commitment.
If necessary, and you are in a position to do so, offering to pay a bigger rental deposit should help a landlord look more favourably on your application. The landlord will have a greater degree of security that way and it also demonstrates to the landlord your commitment to the property. If you default in any way the landlord will be entitled to use some or all of the rental deposit you have paid to make up any shortfall due .
If all else fails, then you may have to consider asking someone to enter into the lease agreement with you as a guarantor. Perhaps you could ask your parents to do this. It simply gives the landlord another element of security because if you default in your obligations, the landlords can pursue the guarantor. Entering into a guarantee is not something to be done lightly so you should probably only think about this as a last resort.