Bad credit can make or break your ability to get a mortgage, and we all know that’s true. Nowadays, even getting an apartment with bad credit can be difficult, since most landlords have begun to require a credit check for potential lessees. The more problematic issue with apartment rental credit checks is that there’s really no minimum standard credit score that renters will need, so it’s difficult to actually figure things out as far as what you should expect.
It is possible to find a place to live if you have bad credit. That being said, having bad credit and renting with bad credit can leave you at a serious disadvantage. If you are curious about how bad credit can put you at risk, keep reading…
- It can mean that you’ll pay a higher price for the same apartment. Some landlords will require you to pay a higher price if you have bad credit, simply because they’re concerned about your ability to pay rent on time…or at all. Thus, real estate might just become a little bit less affordable.
- Most landlords will flat-out reject a renter who has very bad credit. It’s too big a risk for them to take on. Can you blame them? According to at least one poll, even having a 620 credit score can take you out of the running.
- A bad credit score can also mean that you’re at the mercy of landlords in more ways than one. Landlords know that the amount of places that you can move into will vary greatly depending on a good FICO score. This means that a landlord may try to get you to accept substandard living conditions based on your credit score, and may shirk his duties because he knows you might not find another place to live.
- Speaking of which, many landlords might actually outright fleece you. There have been many cases in which a supposed landlord would allow someone to move in without a credit check, only for the new tenant to find out that the landlord was fake. Though it’s not a 100% safe bet, a landlord that actually checks credit is more likely to be legit.
- In some cases, bad credit can disqualify you from low income rental programs. This might be the saddest Catch-22 you’ve heard today. People in need often have bad credit, but they will often get turned away simply because they have bad credit to begin with.
- It can also mean that you’ll have to jump through more hoops in order to get the same rental. You may have to furnish some referrals to your good tenancy. You might have to get a co-signer before you can lease. Whatever the requirements may be, you will likely have to do more just to prove you’re worth a shot.
The good news is that renting still doesn’t require a score that’s too different from actually getting a mortgage. Most landlords will be willing to rent to someone who has around a 630 credit score, so as long as you have at least that, you’re good to go.