9 Reasons You Need Good Credit

3) Rent an Apartment

Even renting an apartment can be difficult with bad credit for the same reasons as in trying to get a loan. The landlord, or property manager, wants to know that they will be receiving their rent every month. You need to keep in mind that the person who owns the apartment or home is likely still paying off the mortgage. That mortgage is dependent upon you paying your rent. It’s a cycle that the landlord needs to know will pay off.

However, getting an apartment with bad credit is slightly easier than getting a car loan or a mortgage. The only problem is that it might cost you more than you were hoping or planning. You may need to pay one to two months of additional rent, and a higher security deposit. Or, you may be restricted to the length of time you can rent the property, such as a month to month, or a three-month rental agreement that is strictly subject to eviction if you are even a couple of days late in payment.