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Can I rent private if I have a low credit score?

(Unusual) Repairing low credit score? Soon I will be debt free, with no rent and only $350/mo in bills.?

  • I lost everything in the economic crash. My high-paying job(I was jobless 18 months), my savings, checking, retirement. I missed many months on multiple credit cards and loans, broke my leg without insurance, lost my apartment, pawned my possessions for money, went to soup kitchens, and even panhandled. I moved back home when I lost my apartment.(My family has always been poor). Anyhow, in November I was in debt 45K before I got my current job. I now make $85K with bonus in a high-end legal professional job. My credit score is in the low 500s. I decided not to file bankruptcy and pay settlements on my debts (down to $25K). This debt will be gone in weeks due to shelling out almost every dollar I make to debt collectors. I literally will have no bills to pay besides my phone and student loan. Additionally, after many years my entire student loan bills will be paid off in a few months. So I will have just my phone bill. The lady at the bank said I will not qualify for any loan and no credit card under a huge %APR. So- by this time next year will be debt free, have almost no bills, be making about 90K and have tons of money in the bank..BUT BAD CREDIT. How do I build credit when I have no bills and can't get a respectable credit card or line of credit etc..? How will I rent a nice apartment I can easily pay for with a 510 credit rating?

  • Answer:

    You will have to re-build your credit. Get a secured credit card -- you pay a deposit which is held as collateral against the line of credit. Use the card for regular purchases and pay the balance in full every month. In a year, you should be able to get a regular credit card and/or convert the secured card to a regular one. You will need at least 24 months of consistent, on time payment history to see improvement in your score.

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You will need to build a new credit history. I recommended having 2 open accounts of what ever sort of credit lines you like. Secured credit cards would be a good choice for you because they will accept poor credit and every time they show a positive status within your credit history your number should go up steadily. Please make sure that your credit debt from before is listed correctly within your history. If a debt is not marked paid in full/paid then it will continue to hold down your score. Also make sure the companies you owed the debt to are aware it is paid or they may keep funneling your debt out to other collection agencies. On a side note once your student loans are paid you will again be eligible for government student loans.

Unfortunately it will takes YEARS to rebuild your credit. That is the way the entire system is designed. 18 months of hell can take 5+ years to undo.

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