When it comes to getting into a desired rental housing unit, no credit check apartments arrangements can be an easy and convenient solution. However, these kinds of deals can also be hazardous to your financial health. Here are some of the benefits and disadvantages of renting an apartment where the landlord allows for waiving the standard credit check on the rental application.
Pros of No Credit Check Apartments
- A Convenient Application – Credit checks take time and complicate the rental process. Making a deal without one is a much more convenient way to arrange a rental deal, but because it carries some specific risks for both the landlord and the tenant, “no credit check” arrangements are becoming virtually extinct in many rental communities.
- A Matter of Trust – In some kinds of specialized single property or rental by owner situations, a credit check may not apply. An individual landlord with experience in community rentals may rely more on their own judgment and other documentation then on the stringent technicals of a credit rating. However, the success of these kinds of rental deals is something observed strictly on a case-by-case basis. Sometimes, this kind of rental procedure works out well, but other times, it leads to some tricky financial situations.
- The Up Front Cost – For those who are hunting around for the right rental, having to shell out for credit checks can become costly. Landlords generally require applicants to pay for the cost of a credit check, which is why this kind of situation is not a great deal for rental seekers. But, as some experts point out, complying with a credit check does give the arrangement a kind of stamp of credibility, and renters may be more likely to end up with a better housing environment by accepting the up front costs.
Cons of No Credit Check Apartments
- High Late Fees and Other Shady Deals – Some landlords act little bit like predatory lenders. They may allow renters to move in regardless of their income or credit, but then demand their rent by any means if the tenant falls into financial difficulties. A credit check provides an additional security to the lender by indicating that tenants will have the means to pay for the housing that they want.
- Safety Issues – In some cases, no credit apartment deals are done for low quality housing that may not even be entirely livable. On the lowest rungs of the rental housing market, there are a lot of sub-par housing units that come with shady rental processes. Landlords may be waiving the credit check as part of keeping a rental agreement “informal” which can have some adverse effects on those who agree to rent there. This can include unsafe living conditions or a low income, high crime effect where a community becomes less safe.
- Ducking Credit Checks – Usually, being able to duck a credit check for a rental application is only a temporary situation. Those with bad credit find that it generally has a lot of different negative effects on financial freedom and convenience of larger purchases. It’s a good idea to fix whatever is wrong with your credit score rather than just trying to wait out a bad rating.
The above shows some of the common issues regarding a rental application where no credit check is needed.