How to Rent an Apartment with No Credit History

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Renting an apartment with no credit history isn’t as daunting as it may originally seem. In fact, it’s very possible to find a nice apartment without established credit.

Co-sign Option for an Apartment Rental

First, if  you are a college student or just starting out, you may want to ask your parents if they will consider co-signing a lease with you. A potential landlord will then consider the credit of both you and your parents. If you don’t pay rent, your parents will then be responsible for paying the rent, or else their credit will be damaged. Before going into this agreement, you should be aware that keeping open communication with your parents about the status of your rent payments is important and will probably be expected by them.

Help from Your Friends

If your parents can’t co-sign a lease for an apartment, you may also ask a trusted friend, family member or spouse to be a co-signer for an apartment. This may put a strain on the relationship, so you should make sure to give them a way out and keep the relationship friendly if they don’t want to do it.

Use Your Work History

If you have no credit history, you may be consistently beat out by other applicants who have excellent or good credit reports. However, in order to increase your chances of being accepted as a tenant, you should make sure that all other areas of your apartment rental qualifications are pristine. For starters, keep a steady job. You should be employed at the same place for at least the past six months. Employment is probably on equal terms with credit history in terms of what potential rental agencies look for in a tenant. They want someone who makes a steady income and will have no problems paying the rent.

References

Having impeccable references also helps your chances of getting accepted by an apartment complex, even if you have no credit history. If the reason you don’t have credit history is because your last landlord simply didn’t report to credit agencies, make sure to explain this in writing on your application. Give the landlord’s direct line for verification. List all your past references that can verify that you are a good and responsible tenant.

Save Money

With no credit history, one way to assure the landlord that you plan on being a great tenant is to offer a higher security deposit than he requires. A security deposit is money that the landlord receives at the start of the rental agreement. The full security deposit is then given back to the tenant when he moves out, as long as no damage has been done to the apartment, and as long as he doesn’t owe the landlord any further money.

Alternative Rentals

Consider renting an apartment at an extended stay hotel. Apartments offered by long-term stay hotels, such as Extended Stay America, are fully furnished, and they come complete with a kitchen, dishes, microwave and refrigerator. For those just starting out, this can be ideal. No credit check is required by that chain and most other extended stay hotels that offer studio apartments. You can build your credit as you live in the furnished apartment.

4 Responses to “How to Rent an Apartment with No Credit History”

  1. April 30, 2010 at 1:12 pm, Lindsey said:

    This is a great article! A friend of mine actually had this exact issue and had to have her dad co-sign for her. If these options don’t work, though, WilliamPaid offers bill verification services that can help you build instant credit by reporting bills like rent, cell phone bill and other utilities to the PRBC to be added to your credit file. It’s another great alternative if you need credit in a hurry.

    Reply

  2. May 03, 2011 at 3:57 pm, Scout said:

    At last! Someone who understands! Tahkns for posting!

    Reply

  3. September 25, 2011 at 12:17 pm, sharon said:

    Can u offer up an deposit b4 the apartment is move in ready

    Reply

  4. March 15, 2014 at 12:45 pm, ct said:

    asking someone to co-sign and be responsible for your rent is the stupidest thing to do. First of all who in their right mind would do that in this day and age unless it’s your own parents?

    Reply

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