How to Rent a Home With No Credit

Are you having trouble renting because you don't have enough credit?

You're not alone.

26 million American consumers are considered credit invisible. Of those 26 million, more than 10 million are under the age of 25, the age range most likely to rent.

What if we told you that you can rent a home or apartment with no credit? Keep reading to learn more about how you can secure housing without a traditional credit score.

Rent From a Private Landlord

You will likely find that private landlords are more flexible than property management companies and apartment complexes. You are also more likely to find no credit rentals offered by private landlords. 

Pay Upfront

While this certainly won't be an option for everyone, if you have the ability to pay for several months of rent upfront, you may increase your chances of securing a lease. Landlords don't want to worry about whether you will make your payments. If you pay upfront, they have nothing to worry about. 

Pay Month-to-Month

Offering to pay on a month-to-month basis or only signing a short lease may increase your chances of being approved. This is because it will be easier for the landlord to let your lease expire or evict you for nonpayment. 

Move In Right Away

Empty apartments are money pits for landlords. They have to pay utilities but don't collect rent. Offering to move in right away might sweeten the deal, especially if rental demand is low in your area. 

Enlist a Cosigner

If you have no credit history, consider asking someone with a solid credit history to be your cosigner. They will be agreeing to pay if you default on your rent.

Friends or family members with high credit scores are good options. Just be sure to make your payments on time so their credit doesn't take a hit. 

Consider a Roommate

Sharing your lease with a roommate may help you qualify for a rental with no credit. Here are some ideas for finding a roommate if you don't know anyone looking to move. 

Provide References

Providing reference letters is a great way to prove your character. It's reasonable to assume that if you have been responsible at your job and in school, you will be responsible with your money.

Provide reference letters attesting to this from your employers, teachers, and professors.

Prove Your Financial Stability

If you don't have a traditional score, you can take advantage of the rising popularity of the alternative credit score.

Alternative credit scores use data about your financial history and ability to pay outside of the traditional lending system. You can provide your alternative credit score to your landlord as proof of your financial stability.

Alternative credit scores are based on bank accounts, history of non-credit-based bill payments, and financial habits.  

Are You Looking to Rent With No Credit?

If you're looking to rent a home or apartment with no credit, don't panic. While it may be harder, it can be done.

The key is to prove to your landlord that you have the ability and willingness to pay. Even if you don't have a traditional credit score, you can prove your financial stability by using an alternative credit score.

You can bring your alternative credit with you to look at apartment rentals or home rentals. Click here to create a free account today to access your alternative lending score. 

Want to learn more?