How To Rent A House With Bad Credit?

Are you worried about your poor credit history making it difficult to find a place to rent? Don’t stress, we’ve got you covered. In this article, we’ll dive into some of the best tips and tricks to help you secure your next home, even with a less-than-perfect credit score.

Finding a place to rent and securing a tenancy can be a difficult and arduous task, especially when your credit history isn’t on your side. It’s understandable to feel concerned about how your credit might impact your ability to find a place to call home. However, there are strategies you can explore to improve your chances and make the process a little smoother. In this blog, we delve into a range of tips and tricks that give you the very best chance of securing your next home.

Work On Your Credit Score

It is important to work on boosting your credit score in the weeks and months leading up to your house hunt. This could potentially help you become a more attractive prospective tenant to landlords, even with a poorer credit history in the past.

The best way to improve your credit score is to start making all your payments on time. Set up automatic payments or payment reminders for your credit cards, loans, utilities, and any other bills. Paying even a little bit each month is better than missing payments entirely. Over time, this consistent on-time payment history will start to raise your score.

Another quick fix is to register to vote, if you haven’t already. Being on the electoral roll shows lenders and landlords that you are a responsible adult with a permanent address. It’s a simple step that can give your score a nice boost.

Finally, avoid applying for any new credit cards or loans in the months before you start looking for a home to rent. Each application results in an inquiry on your credit report, which has the potential to lower your score, increasing the risk with the more you make, making it very important to limit yourself to only the credit you absolutely need.

With a few months of on-time payments, voter registration, and no new credit applications, you should hopefully see a nice improvement in your credit score.

See If A Guarantor Can Help

One of the best ways to overcome a poor credit history when renting is to have a trusted friend or family member with good credit act as your guarantor. This means they’ll co-sign the rental agreement and take on the responsibility of paying the rent if you ever fall behind.

It can be a big ask to put that kind of financial burden on someone close to you. But if you have a relative or close friend who believes in you and is willing to vouch for your ability to pay the rent on time each month, it can make all the difference in convincing a landlord to rent to you.

The guarantor will need to have a strong credit profile and enough income to cover the rental payments if needed. They’ll essentially be putting their own creditworthiness on the line to help you out. So you’ll want to make absolutely sure you can uphold your end of the bargain and not leave them stuck with the bill.

Approach the conversation with your potential guarantor thoughtfully. Explain your situation, why you’re struggling to rent with your credit history, and how much you’d appreciate them stepping up to help. Reassure them that you’re committed to being a responsible tenant and will do everything in your power to make sure the rent gets paid on time each month.

If they agree, the landlord will likely require the guarantor to sign additional paperwork solidifying their obligation. This is a serious commitment, so make sure your guarantor fully understands what they’re getting into before they sign on the dotted line.

With a reliable guarantor in your corner, you’ll be in a much stronger position to convince landlords to rent to you, despite your less-than-perfect credit. It’s a big ask, but having that extra assurance can make all the difference. 

Approach Private Landlords Directly

Approaching private landlords directly can be a great way to find a home that fits your needs and budget, as they tend to be more flexible than letting agents. When you reach out to the landlord directly, you have the opportunity to make a personal connection and explain your situation in a way that could sway their decision. Plus, going straight to the landlord can sometimes speed up the application and move-in process, since you’re cutting out the middleman of a letting agent.

The key is to approach private landlords professionally and highlight why you would be a responsible, reliable tenant. Emphasise your financial stability, rental history, and any other positive attributes that could make you an attractive candidate. With a direct approach, you may be able to find a rental that better fits your needs and budget.

Be Honest About Your Credit Score 

When discussing your credit history with a potential landlord, it’s important to be upfront and transparent about the reasons behind any past credit issues. This shows that you are taking responsibility for the situation and have taken steps to address it.

Start by briefly explaining the circumstances that led to the poor credit, such as job loss, medical bills, divorce, or other unexpected financial challenges. Avoid making excuses, but rather focus on demonstrating how you have worked to resolve the problem. 

Provide documentation or references, if possible, to back up your claims of improved credit management. This could include recent credit reports, letters from creditors, or statements from a financial advisor.

The key is to demonstrate that you have learned from past mistakes, taken responsibility, and are now in a better position to be a reliable tenant. Landlords will appreciate your transparency and the steps you have taken to get your finances back on track. Whilst there is no guarantee that this will work, there is no harm in being upfront and honest about your credit score. 

How One Stop Money Shop Can Help

Are you in a situation where you don’t have a place to call home yet, but you’re eager to find your next home? Don’t worry, a short-term loan could be the solution you’ve been searching for. 

One of the biggest hurdles when renting a new home is coming up with the initial deposit. This upfront cost can be a significant financial burden, especially if you’re in between jobs or have limited savings. A short-term loan can provide the necessary funds to cover the rental deposit, allowing you to move into your new home without delay. 

In the competitive rental market, timing is everything. When the perfect property becomes available, you need to be ready to act quickly. A short-term loan can give you the financial flexibility to seize such opportunities.

Renting a new home can be a stressful process, and the last thing you want is to have your plans disrupted by a lack of funds. With a short-term loan, you can maintain the continuity of your move, avoiding any delays or complications that could arise from not having the necessary funds on hand.

Applying for a short-term loan has never been easier. At One Stop Money Shop, we offer a quick and easy online application process that allows you to secure the funds you need quickly and conveniently.