Your credit score can play a key role in whether or not you’ll be approved to rent an apartment, but it’s not the sole determining factor.By Megan Doyle | American Express Credit Intel Freelance Contributor 6 Min Read | November 1, 2021 in Credit Score
At-A-GlanceTo rent an apartment, you’ll likely need a minimum credit score of 650 to boost your chances of approval. Generally speaking, the more competitive the rental market, the higher your credit score needs to be. Besides credit score, your credit history, rental history, and income will also be important factors in the approval equation. What Credit Score Do You Need to Rent an Apartment?Most sources suggest a minimum FICO credit score of 650 is a common benchmark for landlords and leasing agencies. Similarly, a 2020 analysis of tenant screening data found that approved renters had an average VantageScore credit score of 638.1 But it’s usually the case that the higher your credit score, the better your chances of approval. Why Does Credit Matter When Renting an Apartment?Your credit score can affect the likelihood of being approved for an apartment because the higher your score, the lower your risk profile. Your history of on-time credit payments, for example, makes up a large portion of your credit score – signaling to landlords that you’ll pay your rent on time, too.
How Landlords Might Check Your CreditIf your potential landlord is planning to check your credit score, they’ll likely make an inquiry with one of the three main credit bureaus, and you may have to pay a fee. Of course, if your credit is frozen, you’ll have to unfreeze it first. To learn how, read “How to Unfreeze Credit for Free.”
Getting Your First Apartment with No Credit or Poor CreditIt’s possible to rent your first apartment even if you have no credit (or if you have poor credit), but you might have to adjust your expectations or put in a little extra work to win brownie points with your future landlord. Here are a few ways you may be able to increase your chances of approval:
In my experience, it’s worth noting that credit scores and credit history aren’t always crucial for renting an apartment. I’ve signed five leases with landlords who didn’t check my credit, but they were in rural areas. It wasn’t until I moved to a more densely populated area outside of New York City that credit scores – and other factors – played a major role in my apartment-renting process. But that doesn’t mean you should ignore your credit history; I’ve learned that having good credit comes in handy throughout your life. The TakeawayIf you’re looking to rent an apartment, remember that many landlords factor credit score and credit history into their decision-making process. The average credit score of U.S. renters was 638 in 2020, but is higher in more competitive rental markets. Although you’re more likely to be approved for an apartment if you have a higher credit score, landlords may overlook the number if you can prove you’ll be a reliable tenant in other ways. Megan Doyle is a business technology writer and researcher whose work focuses on financial services and cross-cultural diversity and inclusion. All Credit Intel content is written by
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