lease with bad credit?
Question: I have decided to sell my condominium and move into a “nice” apartment that is closer to work and more assessable to the subway. I will have a room mate that can be on the lease. I have bad credit because of late credit cards and some being sent to collection agencies. I am working on negotiating new terms to pay them off. One reason I am selling is to pay down debt. I have had a mortgage for 5 years and have never been late on it’s payments. I do not have a rental history. I have always owned. My question is this: Will I have a problem getting a lease with my bad credit? If so, can a second party co-sign even though he/she won’t live there? Thanks!
Answer: Your post didn’t say where you lived so only general advice can be given. In a tight rental market such as what NYC had during the late 90’s and early 00’s; landlords were free to cherry pick from the cream of applicants for apartments. Now with the post 9/11/01 NYC recession some landlords are being a bit less choosy.
Clean up what you can on your credit report and be prepared to explain if need be about what you cannot. Many people in NYC as a matter of fact are selling up and renting since their apartments have skyrocketed in value due to the tight housing market.
You’re credit may not be as “bad” as you think. Landlords vary as to how far they look back, some care about past six or 12 months of payments, others of course may go back a bit further, Most landlords want to see one has the wherewithal to pay the rent, if your mortgage was never late that is a bonus in your favor. Almost everyone has a late payment or two on their credit record, as long as we’re not speaking of 60 or more days past due on one or more accounts you should be in good shape.
Not all landlords are thrilled about co-signers, as it means they have to hunt someone else down to get their money. In a tight market and he has to chose between someone who needs a co-signer versus one that can stand alone, guess who wins?
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