How You Can Manage Your Home Rent with Bad Credit
Category Renting
Managing your home rent while having bad credit may appear hard to do but it's actually not very hard.
Bad credit means low credit. Having bad credit can be due to low income, unemployment or some bad transaction or loan history.
Bad credit is not something good to have as it limits your financial reach.
There will be lenders, landlords, etc. not willing to cooperate with you because of bad credit. Low credit can also lead to a bad reputation.
So, even if you have bad credit reports, try as much as possible to cover them up with better reports. There are different types of landlords, but the two things that they all have in common is to be sure that you will pay them their rent and that you will be punctual about it
If you want to manage your home rent even with bad credit, then read and apply one or more of the following methods below:
Search guarantor or co-signer
Searching for a guarantor or co-signer can help you when you have bad credit.
Finding someone that can afford it and that has your back like a godfather, family or friend to be your guarantor or co-signer will be the best option here.
This is because if you are unable to make payments, the guarantor or co-signer will be required to cover them and if they can't pay then it can become messy.
So, approaching a trustworthy and dependable guarantor or co-signer will make renting easier for you. Acquiring a guarantor or co-signer will assure the landlord to let you rent.
Know what's on your credit report
Credit reports are reports that are sent from your lender or creditor to one or more of the three credit report bureau.
You should know about your credit report to see if there are any wrong reports and if there are, you should report it so that they can be corrected.
Apart from making sure that there are no wrong reports, knowing your credit report will also help you to know your credit history and what your landlord will see there.
Pay in advance or increase your security deposit
Paying in advance or increasing security deposit will put the landlord's mind at rest.
So, to show that your landlord can count on you to be paying your rent accordingly even though you have bad credit, you should try to pay in advance or increase security deposit.
This will show that you are serious with rent payments.
Find a roommate
Finding a roommate means splitting the rent.
It will work in your favour because the price you will be paying is going to be reduced.
Even though it can become uncomfortable when you don't click with your roommate, you should try to bear it so as to manage home rent with bad credit.
Having a roommate will show the landlord that even if you were not able to complete a payment that's due or you were late in payment, at least he will get half of his money.
And your roommate can lend you the money for your part of the rent if you are unable to pay. But you have to pay him/her back and make sure that you are the one to pay your part next time.
The most important thing to note here is that don't get a roommate that also has bad credit.
Have steady, provable income
Having a steady income will show that you can afford to pay rent.
You can prove to your landlord that you have a stable job and income by providing a letter of employment.
And your stable income should not be lower than the monthly rent. Even with bad credit history, as long as you have a good job and pay, you can be given a chance to rent.
Be prepared to pay more upfront
This one is quite straightforward: you may have to pay more upfront because of your bad credit history.
Paying a higher amount will without a doubt reassure the landlord about your good faith intentions of renting the property, without him taking on any extra risk!
Bring recommendations
Acquiring recommendations from previous landlords can help you in renting with bad credit.
Obviously, this is possible only if you had done well in payments to your previous landlords. That way, those landlords will have good to say about you.
If you still have loans that you have not paid back, try to pay them back if possible. This method can also uplift your reputation in the eyes of the landlord.
Applying one or more of these methods will give you a chance at renting a home, freedom debt relief and managing it even with bad credit.
Not backing out after you start using these methods will be good for you, and you should try to maintain them until you are not considered to be having bad credit anymore.
Be assured that you will be able to manage home rent even with bad credit history.
Author: ImmoAfrica.net