Credit scores and the apartment finding process go hand in hand. When you apply to an apartment, you should expect that the application will inform you that the processor will run a credit check on you early in the process. Bad credit can eliminate you entirely from consideration. That’s why it’s important for prospective NYC renters to know what they can do if they find themselves in a situation where they are consistently getting rejected for having bad credit.
Here are some tips for applicants with poor credit history:
Get a cosigner
Cosigners are people who have signed a lease with a renter. The cosigner then shares the responsibility for paying the rent. However, the landlord cannot evict the cosigner if the renter does not pay (because the cosigner is not usually living at the rented space).
In New York City, many people with low credit score need a guarantor to qualify for an apartment. However, this can be a complicated process.
Usually, landlords will require that a guarantor be someone who is employed, or who has been self-employed for at least five years. They also need to have a good rental history. Some landlords will accept more than one guarantor.
Generally, the cosigner is an individual or family member, but they can also be a service provider. These services charge a fee for acting as a guarantor.
Before signing a lease, the cosigner and the tenant should discuss how their finances will work together. If the renter’s income is significantly lower than the cosigner’s, they may be required to make a higher deposit.
While having a guarantor is helpful, you should still do everything you can to increase your own income. Also, you should work to improve your credit score.
A guarantor can be a friend or a family member, but they do not have the right to use the apartment. Therefore, it is important to make sure that the guarantor is reliable.
There are also institutional guarantors. Examples of these include The Guarantors and Insurent Lease Guaranty.
Sign your lease with a co-applicant
If you are a poor credit tenant, you may find that signing a lease with someone else is a viable option. A co-signer is a third party who has good credit and is legally responsible for paying the rent if the renter fails to do so.
Many landlords require that you use a guarantor to sign a lease, or that you sign a lease with another person who does. This is to ensure that the renter will pay the rent. Guarantors can be friends, family members, or even your parents.
You should check your own credit report before submitting a guarantor’s application. This is to make sure that you have the necessary financial resources to pay the rent.
Most apartment communities require a minimum of 620 credit scores, but some have less rigid standards. Some allow a second guarantor, while others only accept a single guarantor.
A guarantor is a trusted friend, family member, or other individual who is willing to act as your protection in case you default on the lease. He or she will have to sign a lease, or a contract, with you, and will have the same rights as you do.
You can also apply for housing assistance if you have bad credit. The application will require you to submit your income and proof of recent payment streaks.
Choosing a guarantor should be a fairly easy process. Typically, you will need to provide your passport, two most recent pay stubs, and a letter from your employer or new job.
Expect to pay more upfront
Having a poor credit score can be a major deterrent when it comes to renting an apartment. Landlords want to know that you’re going to be a good tenant, and your credit report can give them an indication. If your credit is blemished, you’ll want to have a plan in place to help raise your score.
One thing you can do to improve your credit is to pay off your credit card debt. This will show landlords that you’re responsible and can make on-time payments. You can also work to reduce your total debt load.
While it may seem like your bad credit will keep you from getting an apartment, it doesn’t have to. A bit of strategic planning can help you prove your mettle to a landlord.
You can start by establishing a solid credit history. You can get one for free from the three major bureaus. The best way to do this is to make sure you’re making regular payments on time. Also, you can ask other tenants to provide references.
A security deposit is often required. Usually, a landlord will require between one and two months’ rent. However, you can negotiate a smaller security deposit if you have good credit or a recommendation from a previous landlord.
Keeping an open credit account can also build your credit score. When you apply for an apartment, you may be asked to submit proof of employment. Your job can be a big indicator of your financial health.
Finding an apartment with no credit check
Finding an Apartment in NYC with No Credit Check can be a challenge. But, there are some ways to find cheap apartments.
First, try looking at individual listings, rather than just through a general apartment finder website. You can also look at classified ads. Sometimes, owners will advertise their apartments for rent on social media.
Next, look for a real estate broker. Many brokers are well-versed in the rental market in New York City and offer a wide variety of options. Some brokers will even provide detailed descriptions of available apartments, including pictures.
Lastly, try to get references. You may be able to get a reference from your employer or a college professor. Alternatively, you can get one from a volunteer organization. These sources will provide an overview of your character and help to cover up any problems.
The housing market in NYC is constantly changing. When the market is hot, dozens of applicants will compete for the same apartments. However, when it cools, landlords are more willing to fill their buildings.
If you do not have a credit history, you may need to use a co-signer or other documentation. This gives you a safety net in case you fall behind on your rent.
In addition, you may be able to qualify for an apartment by subletting. Subletting involves signing a sublet agreement with the landlord. Whether or not you are approved depends on the strength of your proof of income and your ability to make regular payments on time.