Bad credit apartments: How to get a lease when you have a low credit score

Worried that your credit score will keep you from finding your dream apartment? You’re not alone. Some renters face the challenge of securing bad credit apartments, but here’s the good news: a low credit score doesn’t have to mean living with your parents forever.

While renting with bad credit requires extra effort and strategy, it’s absolutely possible to land a rental apartment that will work with your situation.

Let’s break down everything you need to know about navigating the rental market when your credit needs some work.

What credit score do you need to rent an apartment?

Most credit scores fall between 300 and 800, according to myFICO. This means that your score can make a big difference when you’re trying to rent an apartment.

The most important thing to remember is that some landlords are more flexible than others, especially in slower rental markets where they want to fill vacancies quickly.

How to rent an apartment with bad credit

1. Know your exact credit score

Before you start apartment hunting, get your free credit report from a major credit bureau. You can’t fix what you don’t know about, and being prepared with your actual score helps you set realistic expectations and address any errors that might be dragging down your rating.

2. Be upfront about your bad credit

Here’s a counterintuitive tip: tell potential landlords about your credit issues before they discover them. This approach shows maturity and gives you the chance to explain the circumstances that led to your credit problems. Whether it was medical bills, job loss, or student loan struggles, most landlords appreciate honesty and a clear plan for moving forward.

3. Gather strong references

A glowing reference from a previous landlord, employer, or bank can work wonders when you’re looking for bad credit apartments. These references should speak to your reliability, responsibility, and ability to meet financial commitments despite past credit challenges.

4. Have a cosigner or find a roommate

This is often the most effective strategy for securing bad credit apartments. A cosigner with good credit essentially guarantees your lease, while a roommate with strong credit can help balance out your application. Just remember that you’re still responsible for your portion of the rent, so make those payments on time to rebuild your credibility.

5. Prove your current financial stability

Even if your past finances were messy, demonstrating current stability can convince landlords to take a chance on you. Aim to show monthly income that’s at least three times the rent amount, and consider setting up automatic payments to prove your commitment to on-time payments.

Pro tip: To figure out how much rent you can afford, you can use online tools such as RentCafe.com’s rent affordability calculator.

6. Offer a higher security deposit

Renting an apartment with bad credit can also involve a security deposit. Offering to pay two or three months’ rent upfront as a security deposit shows landlords you’re serious and gives them extra protection. While this requires more cash initially, it can be the deciding factor in getting approved.

How to fix your bad credit

While having no credit is better than having bad credit, it is possible to improve your credit score. Strengthening your score not only makes renting easier but also helps you qualify for better lease terms and lower security deposits down the road.

Here’s how to fix your bad credit:

• Catch up on late payments immediately: Your payment history makes up about 35% of your credit score, so bringing all accounts current should be your first priority. Even one missed payment can lower your score, while consistent on-time payments help rebuild trust with lenders and landlords.
• Pay down existing debt: Work on lowering your credit utilization ratio — the amount you owe compared to your total credit limits. Aim to keep it below 30%, and ideally under 10% for the best impact. Reducing outstanding balances not only improves your score but also shows financial responsibility to potential landlords.
• Don’t close old credit cards: Keep your oldest accounts open whenever possible. Length of credit history counts for about 10% of your credit score, and older accounts show long-term reliability. Even if you don’t use them often, maintaining these accounts in good standing can positively influence your credit profile.
• Consider a secured credit card: If you’re rebuilding credit or just starting out, a secured credit card can be a smart tool. It allows you to establish a positive payment history while keeping spending under control, since your limit is backed by a refundable deposit. Use it responsibly, and over time, it can help you qualify for regular credit cards and leases.

Having bad credit makes apartment hunting more challenging, but it’s not a dead end. With the right approach — honesty, preparation, and sometimes a little extra cash upfront — you can find a rental apartment that meets your needs.