Renting your first apartment is a great step in your life. It is a clear sign that you are ready to become personally responsible and accountable for starting to take care of your home independently. It also means that you will be cautious with how you spend your money since you will be expected to pay house rent on time.
Most landlords require a credit check to determine whether you qualify to rent an apartment. People starting to rent an apartment for the first time usually lack a credit history. Renting your first apartment with little or no credit history is not as scary as it may seem.
How To Rent Your First Apartment With Little Or No Credit History
1. Explain your situation to your potential landlord
It is important to explain your circumstances to the owner of the apartment. While negotiating with your potential landlord, be honest and focused. Emphasize to them that you are renting your first apartment and the reason you do not have a credit history is that you have no debt.
You will be able to convince the landlord that you have no monthly debt obligations to pay hence you will pay your rent on time.Point out your sound qualifications and do everything to back up your qualifications with reliable references. These should include your source of income.
2. Look for an independent landlord instead of a company
Apartment complexes and management companies ask for your credit history as it is the requirement for them to lease you an apartment. It may be impossible to lease from them if you have little or no credit history. Renting from companies involves an application process which includes credit checks and a good credit history as a qualifying factor.
You can rent your first apartment with no credit history if you rent it directly from the property owner. However, it will require you to convince the landlord to lease you the apartment based on other factors other than your credit score. You will also be required by your potential landlord to provide evidence that you have as stable income that will allow you pay rent on time.
3. Offer to pay your first apartment’s rent in advance
Proposing to pay the first few months’rent in advance is an indication that you are committed to renting the apartment. Therefore, you can easily convince the landlord to lease you your first apartment even without a credit history.
Alternatively, if you have enough money, you can offer to double up on the security deposit of the apartment.The security deposit covers any damages and unpaid rent. Hence, a large deposit will influence the landlord in your favor.
4. Get a co-signer with a good credit history
On your first apartment, consider getting a co-signer to guarantee your rent payments. A co-signer can be your friend or a family member with good credit history and a stable income. This helps in building trust with your landlord, who will agree to rent you the apartment with no credit history, especially if you are a recent graduate. As an alternative, you can get a roommate who has an established credit to share the rent and other utility costs.
5. Secure a letter of reference
Character references from your past employers, professors, and teachers are a good way to show the landlord that you are a responsible person who will be paying their rent on time.
A recommendation letter from your employer can create a good impression of your to your potential landlord. Therefore, it is important to collect one in advance to present and submit it to your potential landlord.
Credit history plays a significant role in qualifying you for a rental. However, lacking one should not hinder you from getting a good first apartment to rent.Nevertheless, you will be required to provide additional information including your monthly income as proof that you will be able to pay your rent as needed. Also, you may also be required to pay a higher security deposit or a few months’ rent in advance as security in case you fail to pay your rent on time.