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Although there isn’t a standard credit score needed to rent an apartment, having a high credit score will increase your chances of getting the keys from the landlord. A landlord will typically seek applicants with credit scores that are at least “good,” or between 670 and 739. However, that can vary by landlord or property manager, as well as the location in which you’re renting.
Continue reading to find out more about how renting an apartment can be impacted by your credit score and how to handle renting if your credit score is lower.
Finding an apartment can be a daunting task, especially if you’re worried about your credit score. While there’s no magic number that guarantees approval, understanding the average credit score for renters and the factors that landlords consider can help you increase your chances of landing your dream apartment.
The Average Credit Score for Renters in 2024
According to a 2020 report by Rent Cafe the average credit score for U.S. renters was 638. However, this number varies significantly by location and building type. For example in San Francisco, the average credit score is 719, while in Arlington, TX, it’s 580. High-end buildings tend to have higher average scores (669), while low-end units have lower average scores (597).
What Landlords Look for in a Renter’s Credit Score
Credit scores are a tool used by landlords to evaluate a prospective tenant’s financial responsibility. They want to know that you have a track record of responsibly managing your debt and paying your bills on schedule. A high credit score suggests that you are a low-risk renter who will probably take good care of the property and pay your rent on schedule.
Factors that Affect Your Credit Score for Renting
Several factors can affect your credit score for renting, including:
- Payment history: This is the most important factor, accounting for 35% of your score. It shows how often you’ve paid your credit cards, loans, and other bills on time.
- Amounts owed: This refers to the amount of debt you currently have, which accounts for 30% of your score. A high debt-to-income ratio can negatively impact your score.
- Length of credit history: The longer you’ve had credit accounts open, the higher your score will be. This factor accounts for 15% of your score.
- Credit mix: This refers to the variety of credit accounts you have, such as credit cards, personal loans, and mortgages. Having a diverse credit mix can help improve your score, which accounts for 10% of your score.
- New credit: Opening several new credit accounts in a short period can negatively impact your score, which accounts for 10% of your score.
What to Do if You Have a Low Credit Score
If your credit score is lower than you’d like, don’t despair. There are steps you can take to improve your score and increase your chances of getting approved for an apartment.
- Pay your bills on time: This is the most important thing you can do to improve your credit score. Make sure you pay all your bills on time, every time.
- Pay down debt: Reducing your debt-to-income ratio will improve your credit score. Focus on paying off high-interest debt first.
- Become an authorized user on a credit card with good credit: This can help you build your credit history without having to open a new account.
- Dispute any errors on your credit report: Check your credit report for any errors and dispute them with the credit bureaus.
- Get a cosigner: If you have a low credit score, you may need a cosigner to help you get approved for an apartment. A cosigner is someone who agrees to be financially responsible for the rent if you default.
Tips for Renting with a Low Credit Score
Even if you have a low credit score, there are still ways to rent an apartment. Here are a few tips:
- Be upfront about your credit score: Don’t try to hide your credit score from potential landlords. Be honest about it and explain why your score is low.
- Offer a higher security deposit: A larger security deposit can help reassure landlords that you’re a responsible tenant.
- Provide references: Get references from previous landlords, employers, or other people who can vouch for your character and financial responsibility.
- Find a roommate: Sharing an apartment with a roommate can make it easier to get approved for a lease, especially if your roommate has good credit.
While a good credit score can help you get approved for an apartment, it’s not the only factor that landlords consider. By following the tips above, you can increase your chances of finding an apartment, even with a low credit score. Remember, patience and persistence are key.
Benefits of Good Credit When Renting an Apartment
When deciding who to rent to, a landlord needs more information than just their gut feeling. For this reason, a credit score is very important in determining whether or not to approve your rental application. If you receive all the other signals from your background check that point to landlords giving you the go-ahead, a good or even better than great score can give them the confidence to consider you for the apartment.
When your credit isn’t as good, finding an apartment can be difficult. You may need to get a roommate or cosigner. If your credit isn’t that good, you may be unable to get the apartment you want. A high credit score can give you a significant advantage, particularly if you live in a city where the rental market is competitive.
Can You Get an Apartment if One Person Has Bad Credit?
It is likely to be more difficult for you to get an apartment if one of you has bad credit. Landlords have a lot of leeway and can follow criteria of their choosing.
Still, it’s not impossible even if it is trickier. In this case, it makes sense to assign the lease to the individual with the best income and credit. You could also offer to show your income or provide a reference.
How to Get An Apartment With Bad CREDIT | Never Be Denied Again!
FAQ
Can you get an apartment with a credit score of 500?
What credit score will get you denied for an apartment?
What is the lowest credit score you can have to rent?
What if my credit score is too low for an apartment?
How do I get a rental if my credit score is low?
Highlight your income. Demonstrating that you earn at least three to four times your rent on a steady basis goes a long way toward qualifying you for a rental even if your credit scores are low. If your income doesn’t make you a stellar candidate at one place, look for another place with lower rent. Pay more upfront.
What is the average credit score for renters?
A recent survey of 5 million renters nationwide found that the average credit score for all renters was 638. Here are the findings for the minimum credit score needed by type of unit: However, in many cities, average credit scores are higher. Renters will need to compete with others who are more likely to have good or better credit scores.
What credit score do you need to rent an apartment?
While many believe you need a 650 credit score to rent an apartment, according to recent research, the average for renters is 638. Read on to learn more. If you’re trying to figure out what credit score you need to rent an apartment, you’re not alone. Renters are usually concerned about having a low credit score for renting.
What is the lowest credit score to rent an apartment?
There’s no official lowest credit score to rent an apartment. Every landlord and property manager has different criteria to approve a new tenant. Landlords generally prefer a minimum credit score of at least “good,” which is 670 to 739. A score at or above that range will make apartment applications easier.