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Good credit can open a lot of doors. One of the ways good credit can impact your life positively is by making it easy for you to find your next rental.
So what happens when you don’t have good credit but plenty of money to afford rent? Is it possible to convince a landlord to let you rent an available home or unit? Here’s what you need to know about renting with bad credit but high income.
How to Rent With Bad Credit but High Income
It is possible to rent when you have a high income but low credit. However, there are some extra steps that you’ll need to take in order to get your foot in the door.
1. Show Proof of Your High Salary to Make Up for Your Low Credit Score
Some landlords are going to be willing to overlook low credit when you have a high income. Why? Credit checks prove to landlords that you’re capable of paying your rent on time. Without good credit, they’d normally choose someone else who has a higher credit score.
However, when you have a higher income, you show that you’re more than capable of paying rent. This can serve to alleviate some of the concerns a landlord may have so they can consider you seriously.
If you’re self-employed, gather invoices and bank statements to prove that you have the income you claim. If you’re employed by a company, gather documentation like pay stubs. Proof of income is a part of the application process anyways.
Being upfront about your credit score and coming up with proof of income can help you nip the problem in the bud. Let your landlord know about your situation as soon as possible if you’re interested in renting their property.
2. Look for Landlords That Don’t Run a Credit Check
Not all landlords actually run credit checks.
Sometimes, those with a lower credit score don’t want to have to deal with the hassle of being rejected. Application fees can really add up over time, and some people need to move within a brief timeframe.
Take some time to look around in your area and see which landlords don’t run a credit check. It can be a bit more difficult to find them, but it will pay off if you’re worried about your credit score.
3. Get Positive References From Previous Landlords
Imagine that you own a building. Someone approaches you with poor credit but a decent salary that shows they can afford to rent. Are you automatically going to rent it out to them?
Of course not!
If you fall short in the credit department, you want to make sure the rest of your application shines. This way, you will stand out to landlords and they will seriously consider you.
Get positive references from your past landlords who will vouch for you. This may put you ahead of other applications where people have few references or landlords who aren’t so nice.
4. Pay a Bigger Security Deposit
Taking on someone with low credit can be a big risk for a landlord. They don’t want to have to deal with a tenant who won’t pay rent on time. Worse yet, they can end up going through the process of having to evict them.
You can quell this anxiety by paying a bigger security deposit. This gives landlords the peace of mind they need knowing that you’re willing to pay more upfront. If you have a high salary, setting aside this money ahead of time won’t be a big deal.
As long as you take care of the place and are a courteous renter, you’ll likely see that money back too!
5. Explain Your Reason for Bad Credit History
A bad credit score doesn’t always equal a bad tenant.
In fact, a poor credit score can happen for any number of reasons. Maybe you maxed out your credit cards earlier in life and it’s still impacting your score. Perhaps you defaulted on a loan but have already paid most of it back.
A bad credit history doesn’t necessarily make you unreliable. It also doesn’t impact your ability to pay rent on time. Explain your situation to your landlord and let them know what happened. Being upfront and honest can allow them to understand why your credit is so low.
Then, they might consider this if they decide to move forward with your application. Taking initiative and getting ahead of the issue can offer great results!