{"id":16045,"date":"2022-08-24T15:00:00","date_gmt":"2022-08-24T19:00:00","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=16045"},"modified":"2022-08-24T15:00:27","modified_gmt":"2022-08-24T19:00:27","slug":"how-to-rent-with-bad-credit-nyc","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/how-to-rent-with-bad-credit-nyc\/","title":{"rendered":"Renting With Bad Credit in NYC"},"content":{"rendered":"\r\n

Credit scores<\/a> are annoyingly complex numbers that govern a lot of what you can and can\u2019t do in this country. The credit score ranges from zero to 900, with most people falling somewhere in the range of 300 to 800. It is easy for your credit score to fall below 650, which sounds like a big number, but is actually considered \u201cnot great\u201d when it comes to seeking loans and finding homes. Most apartments for rent<\/a> will insist on a credit check so landlords can have a good idea of how reliable you are when it comes to making payments on time.<\/p>\r\n

However, your credit can drop for surprising reasons\u2014for example, completely paying off your student loans or credit card debt can cause it to fall. So what if you want to rent an apartment, but your credit score is lower than you\u2019d like? The good news is that there are several strategies you can employ.<\/p>\r\n\r\n\r\n\r\n

Why do Landlords Care?<\/h2>\r\n\r\n\r\n\r\n

Credit scores are checked for a variety of reasons when you\u2019re getting a loan or making a large purchase, and the same logic applies to landlords. A credit score is a basic way for landlords to ensure you are a reliable tenant and can make rent payments on time. This logic makes sense on paper but can also be flawed. After all, your credit score can change for many reasons, including errors by credit card companies or credit score raters.<\/p>\r\n\r\n\r\n\r\n

Because of this, you have a variety of options if you do have a bad credit score. A score below 650 doesn\u2019t necessarily mean you\u2019re unreliable. It simply means something could\u2019ve happened that left a dent in your numbers. This does mean that you\u2019ll have to work harder to prove that you are reliable and can afford your rent. While this might be difficult, it\u2019s totally possible.<\/p>\r\n

How do Professionals Check your Credit Score?<\/h2>\r\n

Landlords or the real estate agents who work for them can check your credit score after they’ve received your consent to do so and your personal identification information. The consent is generally gathered on an application<\/a> form or a specific consent to background check form. Personal identification information can include your full name, social security number, and current address. Once the landlord or realtor collects what they need, they can then conduct a check on one of the many credit reporting companies such as Experian, Equifax, TransUnion, etc. to do so.\u00a0<\/p>\r\n

How to Improve your Credit Score<\/h2>\r\n\r\n\r\n\r\n

Quickly Boost the Credit Score<\/h3>\r\n\r\n\r\n\r\n

We won\u2019t lie to you. This method is a bit difficult and could take a month or two before it starts working. That said, there are ways to boost your credit score quickly, like asking for a higher credit limit, becoming an authorized user for a friend or family member with good credit, or just starting payments on debts multiple times a month instead of just once a month. Again, this method might take a few weeks to kick in, but it\u2019s better than waiting a year or more.<\/p>\r\n\r\n\r\n\r\n

Find a Cosigner or Guarantor<\/h3>\r\n\r\n\r\n\r\n
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Photo by Matthew LeJune on Unsplash<\/figcaption>\r\n<\/figure>\r\n\r\n\r\n\r\n

If you don\u2019t have a reliable credit score, you may have the option to piggyback off of someone else’s good credit to get your home. This is easier if you\u2019re seeking a place with roommates<\/a>. If one or more of them have a good credit score, you\u2019ll be sitting pretty. Their score will, more than likely, be enough to satisfy the landlord. They just want to make sure you can pay the rent, so having a roommate with a great credit score will be some peace of mind for the landlord.<\/p>\r\n\r\n\r\n\r\n

If you want to live alone, or all your roommates have poor credit, then you\u2019ll need a guarantor<\/a>. This can be anyone from your parents, to a significant other, to a friend or family. This guarantor should have a great score and a steady gig with a lot of extra income, as they will be legally required to pay your rent if you aren\u2019t able to. For this reason, you and your guarantor must be able to trust each other. If they pay your rent too many times, then they might not be so willing to vouch for you when it\u2019s time to find a new home or renew the lease.<\/p>\r\n\r\n\r\n\r\n

If the people closest to you cannot be guarantors for whatever reason, another good option is a third-party guarantor. Businesses like Insurent and Leap Easy will act as your guarantor for a fee. They require proof of employment and an annual salary that\u2019s 27.5 times the monthly rent, but that\u2019s much cheaper than the 40 times monthly rent landlords sometimes want proof of from potential renters. This is also a way to increase your credit score, as you will be making payments to the guarantor business and your monthly rent.<\/p>\r\n

How to Find Places for Rent with Bad Credit?<\/h2>\r\n

In some cases, you may not increase your credit score high enough before you need to rent an apartment. Here are some alternative methods for renting an apartment even with a bad credit score in New York City. The following houses for rent with bad credit provide opportunities for renters who do not have credit scores above 650.\u00a0<\/p>\r\n\r\n\r\n\r\n

Find a Sublet<\/h3>\r\n\r\n\r\n\r\n

This method is another one where you are essentially piggybacking off of someone else\u2019s credit score. In this case, you typically have to prove to the leaseholder, not the landlord, that you can pay rent. This is because the leaseholder is still responsible for paying rent if you fall short, so their credit score is the only one that matters to the landlord. That said, you\u2019ll likely be signing a sublet<\/a> agreement, so being responsible with your payments is still the best way to go. However, if you swing this right, you likely won\u2019t have to have your credit score checked at all, though your housing will be temporary.<\/p>\r\n\r\n\r\n\r\n

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