If you’re looking to rent a house in Mumbai and have a bad credit score, and you might have to face some trouble finding a landlord who will rent you. Well, one of the ideal solutions for you is to find an apartment which is within your budget, and until then you can improve your credit score.
Most of the landlords use a credit check to vet potential renters. Further, landlords also verify your credit history which helps them to determine how much of financial risk they might have to pose. Now, a lot of questions arises in your mind that what should I do if my credit history is less than stellar?
1. What’s your Credit Report?
Initially, you need to find or check your credit report before you start hunting for a house or an apartment. You have the credit reports with the three major credit bureaus, and you must check all the three of your credit reports since the landlord could check any of them.
Also, if you find any inaccurate information, related to your credit score, then you can use the credit report dispute process to have the errors removed. Lesser the negative information on your credit report, the better will be the chance of getting approved for an apartment.
2. Find a friend that has Goof Credit to Co-sign your Application
Ask your most trustworthy friend or relative which have a good credit score to co-sign your rental application with you. Although, you’ll be the only one who actually lives in the apartment; however, your cosigner agrees to cover the payments in case you’re able to make. This can provide your landlord with the extra reassurance he needs.
Always keep in mind if you fail to pay your rent, your landlord will ask your co-signer to do so, which might ruin your relationship with your colleague.
3. Pay via Direct Deposit to Show Solid Income Source
Even if your credit history is a little shaky, try to show that you have regular solid income. It makes your landlord feel better about you. Moreover, when you apply for an apartment, do have proof of your income ready, such as recent pay stubs, your income tax returns as well as a letter from your employer verifying your employment status and income.
If you offer your landlord to have your rent automatically deducted from your bank, then it would be great for you!
4. Pay in Advance
The pay in advance might be a costly option; however, this will make a positive impact on your landlord. The truth is that landlords don’t care about the numbers in your credit score. What really matters is your ability to pay on time, and settling in advance shows how capable you are!
Moreover, one more advantage of paying rent in advance can help you quickly mitigate your landlord’s concerns, and you can rent that dream mansion of yours.
5. Find a Roommate Who is already Living on Lease
Try to move in with someone who is in the middle of their lease and who has a solid credit score. Alternatively, you can also look for rental opportunities which mainly allows 1 to 2 roommates to sign the contract and find a potential roommate with the excellent credit score.
One of the significant advantages of moving in with a roommate is cutting off the cost of most of your bills, in half. It will give you the financial flexibility to work on improving your credit score and then rent a room which is under your budget.
6. Rent a House or a Flat from Individual Landlords instead of Rental Companies
Well, this one is the most common solution which can help you in saving your money and secondly you don’t require a credit check. As in recent times, the competition is quite higher, so individual landlords are more inclined to give you the benefit of the doubt when it comes to your poor credit.
Final Thoughts
As you can see, there is no need to get dismantled at the thought of your low credit score. Therefore, you need to set aside some time and think about which idea is the best suited for you! There is a fair amount of measures which you can take to improve your tenant’s application and rent a property despite a low credit score.
Now, even if you have low income, no cosigner, or bad credit, there are still apartments available that can help you move through the tough times. However, we have tried to share some of the ways with which you can help you overcome and rent a house in Mumbai even with a low or bad credit score.
If you have any queries or suggestions, do let us know in the comment section. Also, tell us about your experience of getting a 1 BHK house for rent in Mumbai with a Low Credit Score.