Making a consumer proposal or filing personal bankruptcy has a negative impact on your credit rating that may affect a landlord’s decision to accept your rental application.
However, the majority of people that we deal with are renters and many of them move during the course of their consumer proposal or personal bankruptcy.
Landlords, like any other creditor, are primarily concerned with getting paid.
When they see that someone has a bad credit rating, made a consumer proposal or filed personal bankruptcy, their fears are heightened.
There are some things you can do reduce or eliminate their concerns:
Be upfront – if you know that your prospective landlord is going to do a credit check tell them about your situation. It’s better to hear about it from you versus getting the information from your credit report.
Explain why you filed – Explaining the reasons you had to file gives the landlord context and allows them to understand that you are taking responsibility to get out of debt.
Offer additional security – It is common practice for a landlord to ask for first and last month rent. If possible, offer to give them an additional month or two upfront, to reduce any concerns they may have about your ability to pay.
Get a co-signer – One of the most common ways to get around a bad credit rating is with the help of a co-signer. Using a co-signer’s good credit gives the landlord comfort because if you can’t pay they know they will be able to pursue your co-signer. However, there are risks to using a co-signer.
In many ways someone that has taken action to resolve their debt is a better credit risk than someone who has a bunch of debt and hasn’t dealt with it.
Why? The individual that has filed doesn’t have other creditors chasing them and they are unlikely to need debt help again.
We have offices across South Western Ontario and consultations are free. We also have flexible hours to meet your needs so you don’t have to miss work.
Let us help you get a fresh financial start today!