Can’t Qualify? Rent a Cosigner.

cosigner for apartment service

If you have bad credit, or even if it’s less than top tier, you know how difficult it can be to do the basic things in life, even renting an apartment. Luckily, there may be a new option for you — renting a cosigner. 

Having helped tens of thousands of clients with less than perfect credit over the last decade, I know that one of the primary goals of our readers and clients is to improve their credit so that they can move into a new house or apartment.  Unfortunately, in the past this has been a difficult situation to overcome while we work on improving your credit and credit score.

But a new option is emerging that may help individuals get into a new apartment while they are in the process of trying to fix their credit and get on the road to the ultimate goal of home ownership.

In a nutshell, if you have been denied an apartment because of your credit score, or are afraid that your credit will stop you from successfully being approved for a new apartment, then you should contact one of these new services to see if this is a feasible option for you.

As reported by MoneyCrashers, here is a breakdown of the process and potential pitfalls of this new type of arrangement.

How The Cosigner Services Work

  1. Submit an application and application fee to the service - application costs range from $50 – $125.
  2. Receive Approval - upon approval you receive a cosigner certificate which assures the landlord the amount of rent that is guaranteed.
  3. Rent a place to live - just like normal, but you submit your cosigner certificate along with your rental application.
  4. Pay rent - paid as normal to the landlord.
  5. Pay the cosigning service the cosigning fee – generally 10% of the annual rental fee (can be paid monthly or in a lump sum).

Risks Of Using A Cosigner Service

While this is a fantastic solution for many, it does have a number of risks and costs that you should be aware of.

  1. It can be expensive - whether you take advantage of the lump sum fee to the service, or choose the monthly payments the cosigner service will generally add 10% or more to the total cost of the rental, plus the application fee that many of these services charge.
  2. Guaranty may be less than the full term of the lease – some of these services only guaranty 90-180 days of rental payments, this may turn off many landlords who will require additional guaranty’s for your lease.
  3. Upfront fees generally non-refundable – the application fees and other fees paid both to the service company and prospective landlords are generally non-refundable, and if a landlord doesn’t accept the guaranty you may be out a big chunk of change.

The three largest and respected cosigning services are, and Insurent Lease Guarantor Service.  While these three are some of the most reputable as of now, there may be others out there.  As with any service, please do your due-diligence to ensure that you are getting what you need.

Of course, if you are in need of one of these services then it is likely that your credit is not exactly where you would like it to be.  To learn about our credit repair services click here.

Does this sound like a good idea to you?  Have you used a service like this before and were successful, or did you still have problems qualifying?  We’d like to hear your opinions, please leave your comments below.

Image: By: turkeychik

About Anthony Candella

Anthony is the founder and Directing Attorney of and has been helping consumers just like you understand and improve your credit and financial situation since 2003.

  • ShelleyDN

    Yes I have used a co-signing service and it’s the EZ Lease Rentals who helped me find a nice place to lease. I had a bad credit before but with the help of the company I was able to fix my credit rating. EZ Lease Rentals also help people with broken lease, bankruptcy, eviction and foreclosure issues.

  • Jackie Kellner

    It’s interesting to know that there is a service that can provide you with a guarantor. If you don’t have a person with good credit to co-sign the rental application with you, it’s a great option. However, there are much more ways to rent with bad credit than ask a co-signer. Good tips provided here I personally like this one: pay rent in advance or increase security deposit.