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Even though Landlords can have different credit score requirements for renting an apartment there are general standards and best practices that apply to every property. Having a higher score makes it easier to qualify for properties, but it’s still possible to rent an apartment with bad credit or no credit at all.
While important, credit isn’t the only factor that can qualify you for an apartment. Here we’ll answer common questions about apartment qualifications, landlord credit checks and landlord-tenant laws.
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In Experian’s 2023 Consumer Credit Review, the average credit score in America was 715. According to the FICO® credit scoring company, 300 is the lowest score a person can have, while 850 is the highest. Many landlords look at an applicant’s FICO credit score, and having a higher score can help you stand out from other renters.
Below is a breakdown of FICO’s credit score ranges from lowest to highest. You’ll notice that the credit score to get an apartment isn’t set in stone.
| FICO® Score | Rating | What this means for renters |
|---|---|---|
| Less than 580 | Poor | Renters with scores in this range are considered risky to prospective landlords and may seem more susceptible to delinquencies. |
| 580 – 669 | Fair | Renters with scores in this range may have a hard time getting approved for a lease unless their score is above 620. |
| 670 – 739 | Good | Renters with these scores are likely to get approved for a lease and are viewed as reliable tenants. |
| 740 – 799 | Very Good | Renters with scores in this range appear to be trustworthy and dependable tenants to prospective landlords. |
| 800+ | Exceptional | Renters with scores above 800 appear to be exceptional tenants to prospective landlords. |
A credit score of at least 670 will place a renter in the “Good” range and greatly increase their chances of securing an apartment. Landlords also consider other factors like a person’s payment history, which is why many will conduct background checks and credit checks.
Submitting apartment applications won’t hurt your credit alone. However, a hard inquiry into your credit history will briefly lower your score. Hard inquiries occur when another party formally asks a credit bureau if they can review your credit report.
A soft inquiry, or a soft pull, occurs when you review your own credit report. Soft pulls have no effect on your credit health, which is one of the reasons why you’re encouraged to frequently check your credit report for errors.
When a landlord performs a credit check, they look for derogatory marks, such as:
Landlords can use this information to help them screen applicants, but it’s not the end-allbe-all. Applicants can often explain their financial situation and potentially sway a landlord’s decision to approve or deny their application.
If a landlord rejects your application based on data in your credit report, they’re legally obligated to provide a written explanation and tell you how to get a free copy of the report they reviewed.
It’s important to note that credit checks can only share publicly available information with landlords. The Fair Credit Reporting Act (FCRA) protects consumers from illegal and unethical activity while also sharing specific information with other parties.
There are severe penalties for FCRA violations—instances where another party misuses your credit information. Withholding notices, intentionally reporting incorrect information and violating your privacy are a number of transgressions that consumers can challenge.
Yes, it’s possible to rent properties with a bad credit score. Applying with a cosigner, offering to pay your rent in advance and thoroughly explaining your finances can improve your chances of securing an apartment.
Here are several tips for renting with low or no credit:
Working to improve your credit score will help you qualify for a broader range of apartments, though this process requires consistency. Some methods for raising credit work faster than others.
Here are five ways that you can fix your credit more quickly:
Regularly checking your credit report can help you work on your credit in several ways. First, you’ll get a detailed look at your credit habits—making it easier to adjust your spending habits and strategically pay down your debts.
You’ll also get a chance to see if there are any errors on your report. Should you find anything suspicious, you can file credit disputes with the corresponding companies that reported them.
The total length of your credit history makes up 15 percent of your FICO credit score, while new credit makes up 10 percent. If you close an account you’ve maintained for years, your credit may take a hit.
Even paying off an old debt can negatively affect your credit for a time. If you plan to apply for apartments in the near future, don’t pay off or close your oldest accounts.
Payment history contributes to 35 percent of your FICO credit score, making it the most important factor when building credit. Regularly making on-time payments is one of the fastest and most effective ways to improve your credit, while missed or late payments have the opposite effect.
Even if you carry a large balance on one of your accounts, making the minimum payment each due date will improve your creditworthiness. Landlords will also see that you have a history of repaying your debts.
Your credit utilization rate (or ratio) compares your total credit limit to your current account balances. This factor makes up 30 percent of your FICO credit score and measures how much of your total revolving credit limit you’re using.
Keeping your utilization rate below 10 to 30 percent can positively affect your credit. If you ever want to calculate your utilization rate, divide your current balances by your total credit limit and then multiply the result by 100.
Increasing your credit card limits can help your credit by lowering your utilization ratio. Think of it like this: If you have a $500 balance on an account with a $1,000 credit limit, your utilization rate will be 50 percent. If your credit limit rises to $2,000, your utilization rate will only be 25 percent.
Renting doesn’t automatically build credit, but you can report your payments to credit each of the major credit bureaus—Equifax®, Experian® and TransUnion®. You can also contact a rent reporting service to streamline this process.
Creditworthiness plays a big role in qualifying for and renting apartments, and it’s something you can improve over time. Before you start applying for rentals, double-check your credit report. Successfully disputing errors is one of the things that can help you improve your credit. Lexington Law Firm has years of experience in helping clients correct their reports. Learn more about our services, which include reaching out to credit bureaus on your behalf and challenging inaccuracies. You can check out our helpful resources, like the credit snapshot tool, now.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
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