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Finding a place to rent isn’t always easy, especially in a competitive rental market. And when you add a poor credit score into the mix, it can start to feel impossible. But don’t fret — we have some tips on how to pass a rental credit check.
Remember, a low score doesn’t define who you are or tell your whole story; in fact, it can often be the result of something completely out of your control. Still, property owners have a responsibility to conduct a tenant background check as part of the rental application process to help protect their property and finances.
The good news? A low credit score doesn’t automatically close every door. If you’re wondering how to get an apartment with bad credit or have ever asked, “What credit score do apartments look for?”, you’ve come to the right place. Read on to find out more about how to pass a rental credit check.
Why Landlords Require an Apartment Credit Check
While it may seem like just another box to check for your rental application, an apartment credit check is a crucial part of the process. Renting out a property, especially to the wrong tenant, represents a risk for landlords.
And each vacancy or eviction translates to lost time and income, so landlords are particular about who they rent to. Due to the risks, they often run a tenant credit check, which is one of the best indicators of whether you’ll make rent payments reliably and responsibly.
Remember, none of this is personal. Landlords have an obligation to protect themselves. But that doesn’t mean you’re without hope. Continue reading to discover how to secure an apartment or other housing with a poor credit history. But first, we’ll explain what landlords and property managers typically find in a credit report.
What’s in a credit check for rental applications?
When landlords run an apartment credit check, they usually work with one of the three major credit bureaus in the United States: Experian, Equifax, or TransUnion, or with specialty tenant-screening tools like Rent Butter.
However, the background check isn’t about a single number; instead, it aims to provide landlords with a clear picture of a tenant’s overall financial health and to highlight any potential concerns.
While standards can vary for the specific credit score apartments are looking for, their credit check usually contains information such as:
- Employment history
- Social security number verification
- Credit score and payment history
- Fraud alerts or suspicious financial activity
In these reports, landlords will see several factors related to your financial history, such as consistently late payments, a history of eviction, bankruptcies, or excessive utilization of available credit.
For renters with bad credit, this process can feel intimidating, but it doesn’t have to be a deal-breaker. If you’re wondering how to get an apartment with bad credit, understanding how landlords interpret and use this information can help you put negative perceptions to bed. Demonstrating strong references or a steady income is a good place to start.
Most credit checks from a rental application are soft inquiries, which means they won’t impact your overall credit score. Hard inquiries, like those from credit card applications or auto loans, can lower your credit, especially if there are too many inquiries in a short period of time.
What is the minimum credit score to rent an apartment?
When it comes to renting, many renters ask, “What credit score do apartments look for?” The answer isn’t so simple, and it can vary depending on where you’re looking. In high-demand neighborhoods or luxury buildings, landlords often require higher credit scores.
In other markets or in older buildings, on the other hand, landlords may be more flexible with their credit requirements. Generally, most landlords require a minimum credit score of 600. Any credit score below 600 is considered poor, but the good news is that there are several ways to improve it.
So, how to get an apartment with bad credit? Many landlords will work with you and consider your application if you can show proof of stable income and employment, provide excellent references, or put down a larger deposit. Some renters also utilize a rent reporting service, which can help improve their credit by making on-time rent payments.
4 Options for Renting With Bad Credit
Having a poor credit score doesn’t automatically disqualify you from getting approved for a rental. If you’re wondering how to get an apartment with bad credit, the most important thing is to show landlords that you are dependable in other ways.
Here are four options you can take to help strengthen your rental application.
- Secure a cosigner or guarantor: The most effective way to strengthen your application is to have a cosigner or guarantor sign the lease with you. If you are unable to pay your rent, this person will be responsible for what you owe. Your cosigner will be legally responsible for paying your rent if you are unable to do so, which can give the landlord peace of mind about accepting your application.
- Pay in advance: If you can, consider offering the first month’s rent upfront. Prepaying your rent payments can help demonstrate financial stability and show that you are serious about renting the unit.
- Increase your deposit or rent offer: While not always ideal (and certainly not ideal for your wallet), offering a higher security deposit or rent amount can sometimes incentivize the landlord to consider your application, even if you have a poor credit score.
- Tell your story: Numbers don’t always tell the whole story and reflect reality. Be prepared to tell your story. If your credit score dropped as a result of medical debt or student loans, provide that context to show a broader picture of your financial responsibility.
Watch Out For These Apartment Credit Check Scams
A solid apartment credit check protects landlords, but not every applicant follows the rules. While the majority of renters are decent and honest people, there are always those who try to work the system.
It’s essential to know the warning signs of these common apartment credit check scams.
- Missing landlord references: While not every renter will be able to provide previous landlord references (think recent graduates or first-time renters), if an experienced renter can’t provide any, that’s a red flag. A lack of landlord references or rental history could indicate something they’d rather you not know.
- Extra occupants off the lease: If multiple adults will live in the unit, but there is only one person on the application, this can be another red flag. By leaving their name off the apartment credit check, they may be attempting to conceal their own credit or background issues, which can reveal financial problems or a negative history.
- Cash-only rent payments: While some tenants genuinely prefer paying in cash, if an applicant insists on it, consider the risks. Only paying in cash can indicate trouble opening a bank account or even questionable sources of income. Consider a safe and traceable payment method, such as online rent collection, to protect both you and your tenants. If you’re a landlord, collecting rent payments from tenants is free — just sign up for an account.
How to Pass a Rental Credit Check FAQs
Can I get an apartment with a 500 credit score?
Although a 500 credit score is below the suggested minimum of 600, it is still possible to get an apartment. While you may not be able to rent your dream home right away, you can still find a great apartment to rent by highlighting other strengths on your application.
How can I rent with an eviction history?
An eviction is one of the most challenging things to work around when applying to rent an apartment. Many landlords consider it a sign of an unreliable tenant. If you have an eviction in your past, the best thing you can do is provide more information that can help prove your stability as a tenant.
What do rental companies use to check credit?
Potential landlords will look at your credit report from one of the leading credit bureaus as part of a broader-scale tenant screening report. These reports typically include information about a tenant’s credit history, as well as any criminal or eviction history, to help determine their financial stability.
What is the lowest credit score to rent an apartment?
Often, landlords look for a minimum credit score of 600-650 when renting their apartments. However, these requirements can vary significantly, depending on factors such as the building’s location, age, and condition. Landlords may also be willing to work with you, even with a lower credit score, if you can demonstrate your financial stability in other ways, such as pre-paying rent.
We hope this guide helped you learn everything you wanted to know about how to pass a rental credit check. If you need additional information about the tenant screening process, sign up for TurboTenant now.
Disclaimer: This blog is for informational purposes only and is published by TurboTenant. It is not legal, financial, or tax advice. Laws and regulations for landlords vary by state and locality and may change over time. Always consult a qualified attorney, accountant, or local housing authority before making decisions related to your rental property. The publisher and authors assume no responsibility for actions taken based on the information provided.
