Merit Real Estate

Leasing a Home with No Credit

Getting Approved to Lease a Home with No Credit

Are you having a hard time Getting Approved to Lease a Home with No Credit? This is a common challenge for those with bad or little credit history. Fortunately, there are some tips and methods that can help you get your application approved.

Show Them the Money!

If your credit history is questionable, show the property manager that you are well-financed. Provide all of your income and bank statements to show that you are more than capable of paying the rent. They may overlook credit challenges if they see that you have a good income and savings.

Increase the Deposit

Offer the property manager more money down than they are asking for. This will show a higher level of commitment.

Pay a Few Months in Advance 

Paying rent a few months ahead could make the landlord more comfortable leasing to someone with less than perfect credit. More money speaks volumes!

Getting Approved to Lease a Home with No Credit
Paying rent in advance will make the property manager forget about your credit issues.

Rent from Individuals

Property management companies tend to be more rigid about who they lease to. They are not likely to rent to someone that doesn’t meet a minimum income or credit level. On the other hand, an individual leasing their own property may be less focused on credit history. They may not even do a credit check. Working directly with the owner will give you a better opportunity to get approved based on your overall situation or a personal connection.

Finding rentals being managed by the owner can be tricky. There are a few ways to find them. One way is to drive around the neighborhood you want to live in and look for yard signs. If you see a DIY “for rent” sign, it is likely to be offered by an individual. You can also search online classifieds such as Facebook Marketplace and Craigslist.

Leasing a Home with No Credit
A DIY sign like this is a good indicator that the owner is managing the property themselves.

Provide Strong References

Property managers must consider factors beyond credit history. Prior rental history can play big in their decision to approve an applicant. Make sure to list all your references on your application. A glowing reference from your last landlord could seal the deal. Knowing that you pay your rent on time and that you are a respectful tenant will put less focus on any minor credit deficiencies that you may have.

Plead Your Case

Challenges with credit are not uncommon. You probably have a very good reason for why you lack credit history or have a lower score. Be upfront with the property manager to explain what they are seeing when they pull your credit history. Communicating your real-life situation will help them see things from a different perspective.

Find a Roommate with Good Credit

Applying for a lease with a roommate that has good credit will give you a big boost. The roomie’s credit history will serve as a buffer for your less-than-stellar credit. As a pair, you will seem less risky. There will be more accountability and two incomes! That means that you will be splitting costs and saving money too!

Getting Approved to Lease a Home with No Credit
Having a roommate can be fun and will cut down on living expenses.

Improve Your Credit

This is something you should always be working at. Building or repairing your credit is important for many reasons. One big reason is to have the ability to secure housing. It may seem like a big undertaking that will take years to accomplish, but that is not an accurate assessment. In many cases, improvements can be made quickly and reflected on your credit report in a matter of weeks.

Final Thoughts on Leasing a Home with No Credit

If your credit is not perfect and you need to secure a lease, don’t worry, you have options. They may be limited, but you do have options. When applying for your lease, be sure to communicate your full situation and explain past credit challenges. The more you communicate with the property manager, the better chance you will have of getting approved. In so many cases, it comes down to creating a strong connection with them. Be vigilant and eventually you will find a great house or apartment to rent.