How to Rent an Apartment with Bad Credit


The consequences of bad credit can be numerous. Low credit scores can lead to credit card denials, loan offers with sky-high interest rates, and much more.

apartment building

But even more alarming is that more and more landlords are performing a credit check before choosing a tenant to lease an apartment.

If you have a bad credit score, you might even have difficulty finding a place to live. But you still need a roof over your head, so what’s the best way to get yourself out of this situation?

8 Steps to Renting an Apartment with Bad Credit

Here’s a step-by-step guide on how you can get an apartment with a bad credit history.

1. Find Out What’s On Your Credit Report

Even before you start apartment hunting, it’s a good idea to get a copy of your credit report and see what kind of information is listed there.

You can order a free copy from the three major credit bureaus from It’s a fast and easy process and that you can do online.

However, the credit bureau’s allowed response time for disputes increases from 30 days to 45 days when you use the free website. Keep that in mind if you’re trying to increase your score quickly.

There are a few important reasons to check your credit report when looking for an apartment. One is to know exactly what your potential landlord sees so you can address any issues or concerns. The second is so you know how to raise your score.

Check for Inaccuracies

Another good reason to look at your credit history? To make sure the information there is accurate!

A 2012 study from the Federal Trade Commission found that 26% of participants reported potential errors on their credit reports. So, there’s a fair chance you might find a mistake on yours, and it could be hurting your credit score.

Check your report to make sure each item is accurate and up-to-date. Furthermore, educate yourself on how long items should remain on your credit report. If you see something older than seven or ten years, it’s probably time to open a dispute with the credit bureau.

2. Start Improving Your Credit Score

Even if you have a bad credit score now, there are plenty of steps you can take to get it back on the upswing. This will help your ability to get an apartment now and further down the road. Some items take time to correct. However, you can implement a few good habits now that will get your credit scores back on an upward trajectory.

Start by making sure you pay all of your bills on time. Making timely payments is the most significant contributing factor to your credit score.

Once a bill is past 30 days due, your credit score can take a considerable hit. But over time, consistent payments start to have a positive impact. Prevent further damage to your credit score now and help your future score by paying your bills on time and in full.

Ready to Raise Your Credit Score?

Learn how credit repair professionals can assist you in disputing inaccuracies on your credit report.

Removing Negative Items From Your Credit Report

If you have delinquent accounts, work with your creditor or collection agency to get the account back in good standing. You can use several negotiating tactics, such as paying a lump sum in exchange for removing the derogatory item from your report.

If you need help, consider hiring a credit repair agency to figure out the best way to get rid of those negative items. Even if you’re looking for an apartment now, it’s always wise to think about the future as well.

3. Explain Any Negative Items

Once you’ve fixed any potential errors, you may still have some negative items. When you’re applying for an apartment with bad credit, the best thing to do is directly address these items in a letter to your potential landlord. This is especially true if you were in a one-time situation that caused you to have temporary financial hardship.

Maybe you lost a job or had to take care of a sick relative. Whatever the reason, explain what happened and why you are in a better financial position today.

Even if your situation is due to reckless spending, you could try admitting to a temporary flaw in judgment and point out evidence that shows your changed behavior. The older your negative items, the better case you can make for a change of heart.

4. Provide a Recommendation

Another piece of supplemental information you can include in your rental application is a letter of recommendation. Ideally, you’d want to use previous landlords who can attest to your rental history of paying your rent on time each month.

Even if someone has the ability to pay rent, that doesn’t mean they have the willingness. A real-life testimonial can go a long way in proving your character to a landlord.

In addition to your timely payments, your reference could also include information on your living habits. Of course, being clean and quiet is a plus to any landlord looking to avoid a headache-inducing tenant.

5. Get a Leg-up on Your Competition

Despite your credit history, there are a few ways you can make your application shine compared to other parties interested in the same apartment. To start, you could offer the landlord a larger security deposit. That shows the landlord you are unlikely to skip out on rent because you’d lose out on a larger chunk of cash.

The typical requirement is a deposit equal to one month of rent. If you can, offer one and a half or even two months of rent. This will prove that you’re serious about being a responsible tenant. Plus, you’ll get the deposit back when you move out.

If the landlord still has concerns, offer to do a trial run with a three or six-month lease and prove that you can pay on time. Additionally, you could set up automatic payments, so your landlord can withdraw rent from your bank account every month. That way, the landlord won’t have to come looking for you when the monthly rent is due.

A final nudge to be selected for the apartment is to offer a fast move-in to reduce the landlord’s vacancy time. An empty apartment equates to a month of lost income, so poise yourself as a solution to that problem.

6. Stay in the Right Price Range

One of the most significant factors a landlord uses to decide on a tenant is your rent-to-income ratio. This number is determined by the cost of monthly rent divided by your monthly income (before taxes). Ideally, landlords like to see that ratio no higher than 35%. If it’s any higher, your ability to pay rent may be a concern to them.

Your rental application will be strengthened even further if you find a less expensive apartment. By doing so, you will demonstrate that your monthly budget has a sizable buffer. It also helps if you can provide pay stubs or bank statements to the landlord to prove that you have a stable income.

7. Avoid Property Managers

Property management firms tend to have more rigid rules in place. So, you could benefit from focusing your apartment search on those managed by the actual owner. You’ll be able to make a more emotional connection with the person, and they’ll likely have less of a corporate mindset than a property manager.

Even if the owner has specific criteria for a tenant, they can bend their own rules more easily than an employee can bend their boss’s rules.

Plus, an individual owner has their own money at stake each month. So, if they are eager to fill a vacancy, you have a better chance of appealing to their need to get a paycheck each month.

8. Get a Cosigner

One final tip for getting an apartment with bad credit history is to enlist the help of a cosigner. This can be a friend or relative with a good credit score. They will have to sign the lease with you, even if they won’t be living in the apartment with you.

You’re both held equally responsible for paying rent, so if neither of you makes the rent payments, the landlord can sue both of you.

Having an eviction can affect your credit score for a long time. That’s why it’s important to choose a cosigner with whom you have a strong and trusting relationship.

It’s not worth ruining a friendship over the rent. However, having someone with good credit history sign the lease with you might be better than crashing on their couch until your credit score improves. Just remember to proceed with caution if you choose to go down this route.

See also: How to Rent an Apartment With No Credit History

Frequently Asked Questions

Is it possible to rent an apartment with bad credit?

Yes, it is possible to rent an apartment with bad credit. Landlords may require a larger security deposit or look for cosigners or guarantors to offset the risk.

What is the best way to find an apartment with bad credit?

The best way to find an apartment with bad credit is to look for landlords who specialize in renting to people with bad credit. It is also important to be upfront about your credit history.

What is a low credit score?

A low credit score is typically considered any score lower than 580 on the FICO credit score range of 300–850. A low credit score can make it difficult to qualify for loans, credit cards, and other forms of credit.

Do you need credit to rent an apartment?

It depends on the landlord or property management company. Some landlords may require a credit check or a minimum credit score to rent an apartment, while others may not.

What do landlords look for on a credit report?

Landlords will typically look for a few things on a credit report when deciding whether to accept a tenant. They will look at the credit score, payment history, rental history, utility payments, credit utilization ratio, and any outstanding debt.

They may also review the types of accounts they have such as mortgages, credit cards, auto loans, and student loans. Lastly, they may review any negative items such as collections, late payments, or bankruptcies.

What kind of documents do I need to rent an apartment with bad credit?

Depending on the landlord, you may need to provide proof of income, proof of employment, references, and other supporting documents.

Final Thoughts

Having a poor credit score might feel like a roadblock to many things, and finding an apartment is no exception. However, there are several actionable steps you can take to strengthen your application and be chosen by a landlord. Be sure to play the numbers game and apply for numerous apartments.

A strong application and being flexible with the landlord’s needs should eventually result in you getting approved for an apartment. Remember, even after you find the right place, work to improve your credit scores and build your rental history. That way, you can enjoy an easier process the next time you’re ready to move.

Lauren Ward
Meet the author

Lauren is a personal finance writer who strives to equip readers with the knowledge to achieve their financial objectives. She has over a decade of experience and a Bachelor's degree in Japanese from Georgetown University.