How can I get my first apartment with no credit?
Landing an apartment without a credit history is tricky. You’ve probably heard this before, otherwise, you wouldn’t have come here. To say the truth, getting an apartment with no solid credit history will require a bit of legwork from you. This, however, doesn’t mean that it’s impossible. As you check out properties, here are few options you can weigh so that lack of credit doesn’t pose much of an obstacle.
Make a large security deposit
Even though this option is more expensive, it can be an excellent way to work around the fact that you don’t have a credit history. Keep in mind, money talks. So for instance, you can offer to pay the landlord three months of rent immediately. This shows your landlord that you’re not only serious but also have money saved. It also gives them peace of mind knowing that you don’t run the risk of missing on payments, at least for a while.
Offer to move in right away
Landlords don’t like having unrented properties. It’s rather expensive to pay mortgages and utility bills without getting back any reimbursement. Take advantage of this and look for a property that isn’t in high-demand or one that has been sitting in the market. Usually, such homes can get your foot in the door of your first apartment.
Find an independent property owner
Generally, most individual property owners are more lenient than management companies. This doesn’t mean that landlords will still not want to see proof of income stability. Sure, they’ll. However, unlike management companies that require a credit check, they can allow you to rent without established credit.
The general assumption is that those who are responsible at work/school are also responsible for their money. One best way you can prove your character is by providing the landlord with professional references from past professors or employers. Offering these character references shows that you’re hardworking and above all responsible enough to make early rent payments.
Find a roommate
If you can find a roommate with a strong income and credit profile, you can manage to get around your lack of credit history and find an apartment. Usually, if one person’s credit is good enough, then the property owner will chance it and rent you. Keep in mind though, that when relying on your roommate’s credit, it’s vital to hold up on your end of the agreement. Otherwise, you might risk affecting their credit rating and, worse even your friendship.
Make your dreams a reality
As you can see, it’s possible to land an apartment without an established credit profile. Even so, it’s always advisable to start building one if you still haven’t, as soon as you can. With excellent credit, you not only get to apply for apartments but it also helps you buy cars and apply for loans. You can ask your bank to open a secured credit card, one with a low limit so that you can gradually build your limit without risking incurring high debt.