How to Relocate With Bad Credit

Your credit score is more than just a number. Your credit score is an indication of how likely you are to repay debt. Credit affects many aspects of daily life. If you find yourself needing to relocate, you may find having bad credit adds to the stress of moving. Although a poor credit score makes relocating more challenging, it is not impossible.

Help With Moving Expenses

When relocating to another state, you may want to use a moving company. If you are unable to finance the costs, look for movers that offer payment plans. Some moving companies will require an upfront fee and agree to automatically draft monthly payments from your bank account. To save money, you can skip the movers and rent a moving truck. You would be responsible for packing and transporting your own belongings, but will only need to pay for the truck plus gas. Most companies accept debit cards to secure the rental.

Locating Privately Owned Housing

Most apartments operated by professional management companies require credit checks. Look for an apartment that is privately owned. Check the local classified ads for small apartment complexes that offer flexible credit requirements. You can also look for a house for rent. Private owners can be more understanding and forgiving when it comes to credit blemishes. Avoid rentals through real estate companies since they usually have minimum credit score requirements.

Paying the Deposits

Apartments and rental homes do not necessarily deny applicants who have poor credit. You will likely need to pay a higher security deposit. Look for apartments that offer surety bonds as an alternative to a security deposit. With a surety bond, you will only need to pay a percentage of the deposit amount. Unlike a traditional deposit, you get back when the lease is up, a surety deposit is non-refundable. Homeowners may even ask for a security deposit and the last month's rent. If you have the funds available, you could suggest prepaying several months rent upfront as a good faith gesture.

Using a Co-Signer

If you can't afford high security deposits in the midst of a move, you may want to ask a close friend or relative with good credit to co-sign. The co-signer is not required to be your roommate, but will be held liable for paying the rent if you are unable to make the payment.