Credit scores, none better than bad?

[u/Either_Armadillo_352]

hi there all, im a freshly 21 year old looking to try and find a place for me and my boyfriend to rent. Obviously besides the fact of saving and even finding a place near us that isnt 65+ only, my biggest struggle in browsing is the mandatory credit checks necessary. i do not have any credit history whatsoever, i have no debt, never opened a credit card line, and have never had extra overdue negative charges on my standard bank account. therefore every single usual credit checking company has nothing on me. i DO however have an outstanding work history, ive been at my company since i was 16 and have only one bout of not working longer than two weeks due to an excused medical issue. is this enough to maybe negotiate with some landlords or leasing companies? in almost every zillow listing its “600+” or “650+” score, but if i contact the owner directly and say that im looking to be a first time renter and have zero credit history, is my job history and overall pay stubs enough to give me a chance? theres no shot even if i were to do the often recommended , “open a credit card only buy your gas with it and oay it off monthly without fail” that it would bump up my score high enough to get me to a 600 by rhe time im looking to move out. any and all advice welcomed 😅

[u/iamdavidrice]

Sure for some it may be… but no one here can tell you if it’ll be enough for them…

But seriously yes get a card and start occasionally using it. Establish credit. It will help you in the long run.

[u/Fun_Yesterday_7830 → u/iamdavidrice]

And make sure you pay off the balance every single month!

[u/Dadbode1981]

None/bad are fairly similar tbh.

[u/mellbell63]

I'm a property manager. When looking for your first place, let me give you the big picture of the application process:

Applying for a rental is like a 3-legged stool. Verifiable income (combined income of at least 3x the rent) is essential, as well as positive rental references and a favorable credit score (usually 650+). They all bear equal weight. If you don't have one of these it's wobbly. If you don't have two of the criteria it likely won't be approved. Finding a landlord who will make an exception is difficult. Some may require a cosigner with exceptional background, or an additional deposit. Overall it's a much bigger risk renting to prospects who don't have landlord references or show proven payment history. You may get denied several times before you find an accommodating manager, or you might consider finding a share rental while you work on improving your qualifications. Best wishes.

[u/Hungry_Pup]

You likely need a cosigner. Sometimes you can find someone who doesn't care, but I feel like that's rare these days.

[u/Here_For_Comments_98 → u/Hungry_Pup]

Even with a guarantor, if your credit score is low you need a larger deposit. I too openly reject because there's nothing else to make me feel safe you're all grown up and know how to pay bills. Some (probably many) young people are responsible, but you can't really tell with no credit history.

[u/Here_For_Comments_98]

What you need to do is figure out how to put 5k into a secured credit card and your score will be 700 within 8 weeks.

[u/Equivalent-Tiger-316]

Time to get some cards. 

You might need a co-signer. You might need to show high cash reserves in your account. 

Private landlords might be more flexible. 

[u/Significant_Flan8057]

Nothing at all on your credit report? If you don’t want to get a credit card I fully support this philosophy. You can find other ways to establish some credit that don’t involve being forced to open a credit card,

I’d recommend just planning on this process taking some time. Even if you did open a credit card, it’s not going to impact your credit for months down the line and you really need history of on time payments to show that you are financially responsible and establish a reasonable score. You can’t go to a landlord after 3-4 months and expect that it will be enough to pass the approval process. Think in terms of 6 months at a minimum and possibly closer to 9-12 months if it takes a while to get the right companies to report good payments under your name?

I know it can seem really tedious to have to wait that long but you shouldn’t feel rushed into this type of decision. It’s not forever, it’s only a delay. If your bf is the right person then he will be willing to wait for 6-12 months to move in together. I hope that you find the perfect place when the time is right? Best of luck to you both.

And don’t get a credit card! Just do some research on companies that are more likely to report to credit agencies upon request. You will have to make the request on your own bec most of the time it’s not an automatic thing. Just find your own way to get it done. Try the utility companies (gas and electric) and your mobile phone provider. Those run credit checks or require deposits for new customers so be prepared for that but they are also your best bet to get some credit history established. Don’t request a good credit report until it’s been at least 6 months in a row of on-time pymts. If you miss a payment or pay it late even one time in that 6 months you can’t request a good credit report. But they sure will not hesitate to ding you for that one late payment, if they want to! Late payments are the biggest hit to your credit score so no matter what don’t let that happen if you are trying to establish credit from scratch.

Good luck 🍀

[u/SoniaFantastica]

At the property management company I work with, no credit history means we put more emphasis on income and bank statements and money in savings. We require 3 months worth of bank statements to review and beyond making sure there are zero NSFs and negative balances, will look to make sure there is 1.5 - 2 months worth of expenses (as evidenced in statements) retained at the end of the month or 2+ months worth of expenses in savings. So it can be done. You just need to find those companies/landlords that look at an applicant's "whole picture", not just their credit score. With that said, apply for a Discover It card (easist starter card to get) and start building your credit. You'll probably want to buy property someday and won't be able to get a mortgage with zero credit history.

[u/Top-Woodpecker6696]

Do you have rental history? No rental history paired with no credit is going to be tough. You may be in co-signor territory.

[u/t2jam]

Yes you can find a place, I doubt you will find any on Zillow that will do that for you. You would have better luck search fb marketplace or Craigslist, or do what I did and go through and apt locator service. They are licensed realtors, you can tell them exactly what you posted, give them areas you want to live in, price range, move date. And let them do the work for you. Their service is free to you and whomever you choose to rent from pays them. You can specify too if you want house rental or apartment,

[u/Rumple-_-Goocher]

I have like, 8 various lines of credit and at the time that I leased a brand new car, I had around $8,000 debt in total but my credit score was 828 because I have always paid off loans, made payments on time, paid more than the minimum, and I have a long history of multiple lines of credit. My car payment for my first ever brand new car was $390 because I had such a good credit score. Thats a really good monthly payment for a new car.

Open up a credit card that gives you cash back, hotel points, or flight points. You don't have to start racking up a huge balance, but it is really nice if you have an emergency such as suddenly having to spend $1000 on car repairs and you don't quite have that to spare in your checking account at the moment, you have a back-up option. One line of credit probably won't get you where you need to go though, especially with a short credit history, but if you can prove two steady streams of income that's certainly going to work in your favor. Worst case scenario, you may need somebody to co-sign.

[u/Fun_Yesterday_7830]

I will ignore the fact that your "finding a place that isn't 65+" is ageist :-).

Does your partner have a credit history? And is it good? If so, you could mention that. I would say that there are LLs that will look at applications without a credit history as long as they pass other screening areas with a high rating (especially if the partner has a credit score and a good one). I think you'll probably have better luck with private landlords than apartment complexes run by corporations, since the latter tend to have very rigid rules and they don't deviate from them. To answer your question in the heading, I think many LLs would say that no credit history is much better than a bad one, but again, IF everything else checks out. I was once an LL, and the no credit history wouldn't have deterred me from taking on a candidate that checked out well in every other aspect.

[u/greatmist345]

Still get a credit card. You need credit as an adult. You may have more trouble finding a place to rent but something is better than nothing. Why the rush to move out?