Housing Options for People With Bad Credit

Buying a House

• Contact several lenders to see if any of them will work with your bad credit score. For instance, try credit unions, mortgage companies, mortgage brokers, commercial banks and thrift institutions. Some of these institutions are geared toward people who do not have good credit. Additionally, you should be aware that you may have trouble qualifying only if you owe more than $500 on your credit accounts. So try to lower your credit card balances below $500.

Renting

• You could look into renting from a family member or a friend who will not mind your credit history. Furthermore, look at private rentals in a home where the landlord is the owner who lives in the house. These individuals will be more likely to rent to you with bad credit than will the manager of several large apartment complexes. Check in free newspapers, on bulletin boards or other areas where landlords do not need to pay to advertise.

Renting a Room

• If you cannot afford to rent an apartment or buy a house with your bad credit, consider renting a room. Since the rents are generally lower, you might not have as much of a problem with your credit history. When you rent a room, you will basically be living in one room of someone else's home. There might be a community kitchen, bathroom and so forth, and there will probably be other renters there as well.

Living With Someone

• If you have bad credit, you might not be able to get any sort of place operated or owned by a stranger to take you in. Therefore, ask relatives and friends if you can live with them while you get your credit in order. Be honest about your credit history and help around the house, buy groceries, etc. to show that you are working toward independence.