How can I clean up my credit and get into an apartment?
Hello Michael, I am trying to start over. I filed bankruptcy in 2008 and everything was discharged. I started building new credit up until 2012. I have credit cards charged off, maybe 5, and a repossession in 2013.
I relocated in 2011 to another state due to divorce and loss of job. I lived in an apartment for 2 years and that's when I relocated.
The complex knew about me leaving and we both agreed. I pulled my credit report last year 2014 and saw that the complex sent me to collections for a bill I never received for paint and carpet, which I would think that should be done regardless, because I was there for 2 years. I called the collection agency tried to settle for half of the bill just to get it off my credit. They said no - all or nothing - and even if I paid it would remain on my credit for 7 years.
I came back to Illinois in 2013 because my mom got sick. She passed in April of 2014. I now am trying again to start over, but with the rental recovery no one will rent to me. Please point me in the right direction for what i can do to clean up my credit.
How can I clean my credit when I need to move?
—deb
Is it the property management company that is reporting the unpaid clean up costs that were not covered by your security or cleaning deposit (if there was one)? Is it an outside third party debt collection agency that shows up for this debt? If you needed to, in order to put this behind you and get approved for a new rental, could you come up with some money to settle the old bill?
The answers to those question could change my feedback about how to approach cleaning your credit up.
Past Landlord Collections on Credit Can Be Overcome
Renting an apartment with collections and past landlord issues on your credit reports is not impossible. Your pool of properties to choose from will often shrink though.
6 ways I have seen past debt relief customers rent a place, even with terrible credit, have included:
- Be proactive and explain the past rental and collection issues up front. The smaller the property you may rent from, the likelier it may be that you can actually sit down with the person making the credit decisions. Write a well crafted letter that includes the details you need to cover, and include that with the application you submit.
- Rent a room from a local homeowner. The owner may not run your credit to approve you. And you have the highest chance of making a great impression in person when you meet to see the place, which can help you overcome credit objections.
- Renting a duplex or fourplex from the building owner that is an onsite tenant would have similar face to face benefits to renting a room.
- Lay down a larger deposit than what is being requested for the specific place you are submitting an application to rent from. And put the fact that you are willing to increase, or even double your deposit, right out there when you are talking to the owner or manager.
- Look for any discrepancy in what is being reported to the credit bureaus. Find an angle to dispute the most offending items off of your credit reports. More on this when you answer my questions about who is reporting in the comments section below.
- Hire a credit repair company.
Do not leave applications with the person at the front desk, or submit them online. Show up in person, and ask to speak to the property manager or owner. Dress well, keep great eye contact, and sell them on why you are a good choice as a tenant, regardless of what might be seen on your credit report.
Credit Clean Up Companies
There are credit repair companies out there that have some success cleaning up negative items off your credit reports. Some charge monthly fees that are reasonable, and others really soak you. Using a credit repair company for a few months to see if they can clean up a key derogatory over some minutia may be worth it. Just know going in that it can be difficult to get blatantly false information off your credit. If you do pay out for credit clean up, and you are trying to get something that is 100% accurate and current removed, you may not have any success.
You can clean up your own credit reports. It takes time just like hiring a credit repair agency would. There is nothing scientific to it, but it is something people will avoid doing for themselves.
I will have more to share once you post answers to the questions I posed above.
Anyone reading with questions or concerns related to credit report clean up and getting into a rental is welcome to post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
If I have 2 rent collections on my report, will I still be able to rent? I have a 647 credit score
It would be normal for a property management company to turn away someone with past unpaid rent on their credit reports. With 2 different instances I do not like your chances. You may want to:
Resolve the past debts first.
Offer a much larger deposit or extra months of rent up front.
Get a cosigner.
Thank you. I am disputing them as we speak. Additionally, if I get a cosigner, will I be able to secure a unit?
A cosigner is often required by property management companies for those who cannot qualify with their own credit.
Post an update with how things work out for you.
I’m very new to renting and all the issues and key points that come with it š I have alot of collections right now that I didn’t know about till I was denied an apartment. Any advice/tips? I’m currently trying to find a different/better apartment right now, but worried about my collections
Depending on your situation you may need a cosigner, or more money to offer additional months rent paid in advance.
Hi I have a collection on my credit with IQ DATA from an apartment I lived in 3 years ago. I was young and didn’t know that you needed to give your apartment notice before moving out so once my lease ended I moved into a new apartment complex and was told by my previous apartment that I needed to give a 60 day notice before moving out and if I wasn’t going to pay 2 more months of rent they would consider me skipping out on my lease and now they’re charging me $3200 I’ve called the collections company and told them I could make a one time payment and settle for half which is $1600 and they stated the lowest they could settle for is $2200 I told them I wouldn’t be able to pay that and they stated then there’s nothing they can do. I’m looking to move into an apartment by the end of this year and want to know is there any other way to get this off of my credit?
Ho many conversations have you had with IQ Data about settling the debt?
I had a recent repossession but no issues with my prior rental apartment. I have applied to several places even to take over a lease and they said they couldnāt approve me due to the repossession that happened in June but itās reported on my credit report as September. Would subleasing or getting a roommate help me with getting approved for an apartment?
Having a cosigner could help.
Subleasing options could have the same barrier you are experiencing now.
Is the repo on your credit showing an unpaid balance?
So i became fully disabled receiving SSDI (it took 9 months to get it) after having a major neck surgery that left me pretty much unable to do anything. I was 60 years old, worked all my life, paid my way thru college, never had a single blemish.I was 6 months into a 15 month lease. Iāve written to the agency collecting the $4900 they want, and they said theyād settle for $3600. I said that $3600 might as well be $36M. They donāt care about my circumstances, they just want money. If i had resources Iād be working to initiate some legislation for the ppl who find themselves in this trap. I canāt even get Section 8 housing with it, which seems odd, given the circumstances. These ppl are just a 1/2 a notch above Payday Loan scams. Nobody oversees them, theyāre not accountable, and theyāre unapproachable.
Hi! I’m in a bit of a pickle. I rented from an apartment from 2016 – 2018. Upon move-out inspection, they noted that the carpet would need to be replaced and would forward the bill to our new address. We received the bill for around $700 but we were broke from moving costs and set it aside to pay later. Lo and behold, time passed and we forgot about it. Now I applied to a new place and they denied me due to rental history. It’s not even on any of my credit reports. The problem is that the old apartment is not owned by the same management company. It’s not even under the same name. They have no records prior to the takeover. They passed me the number to Northland Investment Company, however, after six calls in the last two days, I have yet to receive an answer from them. I’ve been explicit that this is a time-sensitive issue, but I’m at a complete loss.
I would connect with a local tenants rights advocate to see what they recommend.
Hi there! I’m in the process of moving and I’ve forgotten to pay my last apartment moving out deposit and rent because i was moving so quickly; also it was my first apartment I was young and yes i have made mistakes. Are there any ways to be accepted to new places even with that on your record? If I pay it off will it be used against me? What can I do to get raid or pay off that debit? Any information will be helpful! Thank you!
I would try to negotiate a settlement with the old place. I would try to have a lump sum to pay it, so the credit can be updated quickly.
You could need half, or more of the balance.
Hi Michael, Iām David Moore and had to leave an apartment early by two weeks due to some financial issues. Unfortunately I didnāt clean it up in a timely manner like I should have. For the two years prior at this same apartment was always on time and the current lease in a different home never a day late two years running, pandemic and all. Iām now needing to find a rental and am concerned this collection will prevent me from getting a decent rental. Any thoughts?
If the collection is unpaid still, and you have the ability to resolve it by settling for less, I would do that.
Hi! I have a question about a rental balance thatās on my credit. I was living with my parents back in 2017. We were renting the apartment together. We had to move due to mold and water problems. We gave them notice and made the rent payment however, they still sent notice to a collection agency for 1300.00. My parents filled bankruptcy back in 2019 and the apartments collection was listed on it. Itās still showing up on my credit and on my little sisters credit. (She was 18 when we lived there) Iāve been helping my parents make monthly payments on their chapter 13 thinking I was helping them pay off the debt. Nothing has been paid on the apartment debt. If this account is in my parents bankruptcy but still showing under my credit, will I still be able to get an apartment? I called to make sure it wasnāt an eviction and the informed me that it was not.
Any unpaid debt on your credit can make it harder to rent an apartment compared to an applicant with clean credit.
If the unpaid debt is from a past apartment lease, it can be impossible to get approved for many places.
Good morning. I have contacted an apartment complex that I rented from back in 2018. They have sent it to collections and have started the process with court. The court hasnāt set a date as of yet. I called the apartments attorney and wanted to set up a settlement negotiations. I offered 1500 on a 2900 balance. The thing is they tacked on an extra amount of money which the balance is now 4000 and some change. They denied my offer and counter offered for $3000. They say once they make an offer thatās the lowest that they will go. Should I pay that 3000 or just wait for the courts to see if I can work out a amount with the judge?
Also if I get it removed from my credit report it will still show on the renters report right?
The judge is not who you will negotiate with. The court is there to decide if you owe or not. You can challenge the amount they say you owe and get proof through discovery of how that amount was determined. And in that way, the judge can impact amounts, but typically will not direct the plaintiff on whether to accept your settlement offer.
Where is the renters report pulling their information from?
I have an odd question as well. Five years ago I fell on hard times and lost my job and went on unemployment for a while. I was keeping up with my bills as best as I could. At first the apartment complex leasing agency was kind and worked with with me. I had to go to court and sign an agreement to pay a certain amount by or before October 1st of 2015. I was able to obtain two part-time jobs and met with / signed an agreement with their attorney and it was a legally binding stipulation court document stating that I needed to pay my back due rent debt and that I would be in good standing after that. Of course I paid everything (ended up being $4,000.00 all together including my $1,490.00 security deposit they kept).
The mind boggling thing is that 3 months later in December 2015 the same apartment complex leasing agency placed a collection against me but no one could provide evidence or an explanation as to why this was placed on me and 3 months later no less.
I moved in with family for a few years and now would like to get back on my own again. This collection is still on my credit report and I even recently tried to re-connect with the old leasing agency only to find out that they no longer exist, they were bought out by a different company and no one has my tenant information or court information on file (I still have all my physical court documents).
I called the new leasing agency and they couldn’t find my information. They told me to contact the old headquarters of the old leasing agency.
I called them and they didn’t have access to old tenant information either and had no clue how to obtain it. They were able to see my collections claim that was created but there was no evidence, no pictures, no court documents, nothing to validate who created the claim against me and exactly why it was created with evidence.
The headquarters of the old leasing agency recommended I call the attorney who took the case. I called the attorney who took the case and he too said the same thing. He could see the collections claim and the amount but did not have any information as to who created it and why. He recommended I call the collection agency again.
I called them and spoke with a representative who told me that they supposedly didn’t have the information for who created the claim but the reason just says “Rent/Damages”.
I’m thinking “how could this be??” because not only did I have court documentation, but I paid what was owed and then some which would have been more than enough to cover my rent for four months. Plus if it was discovered that I had not paid what was due in the legally binding court judgment stipulation then there would have been more legal court documentation that ensued and that would be available today stating that I signed a legally binding stipulation contract and failed to abide by it and next steps were taken which I’m assuming would have been more court hearings.
I also find it odd that 3 months after I move out is when “someone” decides to put me into collections for “Rent/Damages” but doesn’t include any evidence as to how they came to their conclusion. Sounds fishy to me.
Anyway long story short, the old company doesn’t exist anymore, no one from the old or new company can help me because none of my information is in their databases and now the new company won’t call me back (maybe they’re scrambling to figure out why this really happened to me. I told them I’m not interested in reparations I just want to move easily in peace without this collections item on my report)
Is the collection showing with a balance still unpaid, or with a zero balance owed?
Hi Michael,
I am looking into renting an apartment, I have a little one on the way and need my own place. I got evicted from my first rental in the ending of 2018, they gave me a week, in the middle of a winter storm, during Christmas to get out. I was unable to get all of my things removed due to not having anywhere to put it with such short notice of eviction, along with not being able to clean up at all. They are now charging me almost 8000 dollars in collections and I’m terrified I won’t be able to even rent a apartment with all of that being on my Credit report. I just want some place safe for me and my family to live, seeing as me and the father have been homeless since thee eviction.
It will be hard to get accepted in a new place with this other debt unresolved.
There may be local resources that can assist. See if there is a local housing counseling or tenants rights organization that can point you to anything helpful in your area.
You may need to pay more upfront to get in a place, or even a lease cosigner.
Hi I am living in 2018 I had to move out due to roommates leaving and I couldn’t afford it on my own. I put in a notice but I was unable to pay the rest of the rent. I was sent to collections and last year paid my debt off through credit collectors. I’m living in a complex now where I paid a bigger deposit to move in, in April 2020. The problem is now because my upstairs neighbor flooded her apt., and I guess it being an older complex there living conditions are now unhealthy due to mold. mildew. and some sort of bugs started to appear. I am planning to move again but I’m curious if the old apartment is still showing up on my credit. I did pay it off last year June, but it was still on my credit with this apartment. The creditor sent me a letter for proof of payoff but shouldn’t it be completely removed from my credit since I paid it off? I’m not sure what to do can you explain.
It can take 7 years, from when you stopped paying the bill originally, for it to age off your credit. More on that here: https://consumerrecoverynetwork.com/question/collection-accounts-age-off-credit-reports/