What Credit Score Do You Need to Rent an Apartment or House?
Considering renting a house or an apartment? You might be wondering: What credit score do I need to rent an apartment or house? While there’s no official or legally required credit score for renting, the range of scores that is usually accepted varies based on the region the property is in and the landlord’s policies. A solid credit score could increase your chances of approval, and landlords may also consider other factors including rental reports, income, references and payment history.
Why your credit score matters when renting a home or apartment
Landlords use credit scores to help them assess the risk of tenants being able to pay rent on time. A strong credit score can increase your rental chances and even allow for lower security deposits. Now, let’s break down the details.
When credit scores are considered, a score above 670—on a FICO® Score range of 300 to 850—generally indicates good creditworthiness. The cutoff can vary depending on the apartment, your local rental market, your income, and the rent. And because your FICO Score does not consider your income in its calculation, that's something the landlord will factor into their decision separately.
What is the minimum credit score to rent an apartment or house?
As mentioned, a credit score above 670 generally indicates good creditworthiness, but a lower credit score doesn't automatically mean your application will be denied. A landlord may scrutinize applications with lower scores more closely. In a competitive rental market, the higher your credit score, the better.
Credit score for renting an apartment vs. renting a house
There are a few noticeable differences between renting an apartment and renting a house. Mainly, the difference is in rental requirements, including the credit score needed to pass muster. Apartments may have lower requirements compared to houses, as landlords prioritize your income, using it as a measure of how likely you are to pay your rent on time.
How landlords evaluate your credit score when renting
Your score plays a role in the approval process, but other factors, like income and rental history, also determine how likely you are to pay your rent on time.
Can you rent an apartment or house with a low credit score?
If you don't meet the credit qualifications to rent an apartment or home, all's not lost. There may be a few ways to get your foot in the door depending on the landlord.
For starters, you may be able to negotiate paying a higher security deposit or covering a few months of rent in advance. Having someone vouch for you, either rental references or a co-signer can also give you some additional credibility. In the case of a co-signer, there's another person sharing the risk with you, which may make it easier to get approved. You also may have more success with an individual landlord rather than a property management company whose rules tend to be less flexible.
On the flip side, a higher credit score doesn't get you a better rental rate, but having good credit may give you the benefit of moving in with a low or no security deposit requirement.
Steps to take if you don’t have the ideal credit score
If your credit score is less than ideal, don’t panic. There are a few things you can do to secure the apartment or home you want to live in. You can try:
- Getting a cosigner
- Paying a higher security deposit
- Offering references
- Getting a roommate
- Negotiating terms with landlords
Keep in mind that if you’re getting a roommate or a cosigner, their credit must be higher than yours – credit can’t be added like a math equation, and two low scores don’t combine to a high one.
Improving your credit score before applying to rent a house or apartment
If you’re looking to apply for an apartment or rental, there are a few actionable things you can do to improve your credit in the meantime. Start by paying down debt, checking credit reports for errors, and ensuring that all payments are made on time.
When can I check my credit score before renting?
It’s good practice to check your credit score before you start applying for apartments or homes, as then you’ll know what you can qualify for. Remember that checking your credit score is a soft inquiry, which does not impact your credit score.
What other factors do landlords consider for renting?
Some landlords may only look at your actual credit data, focusing on your payment history instead. Regardless of your credit history, landlords consider the ratio of your monthly income to monthly rent to ensure you can afford the rent payments.
Some landlords use tenant screening services or rental-specific credit scores to approve applicants. Landlords may even opt for a service that automatically screens tenants based on certain risk factors like debt-to-income ratio, number of bankruptcies or delinquent accounts, and criminal history.
How long does it take to improve your credit score for renting?
Working on your FICO® Scores is a gradual process that requires patience and consistent effort. The time it takes to see the impact depends on your unique financial circumstances and the actions you take to build or repair your credit, but in general, you may start noticing small changes within three to six months.
Significant changes can take longer, especially if you’re recovering from issues like late payments, high credit utilization, or negative marks.
Tom Quinn is the Vice President of Business Development for myFICO and has over 25 years of experience working with consumers, regulators, and lenders regarding credit related questions and initiatives.