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What Credit Score Do You Need To Rent An Aparment?

Wondering, “what credit score do you need to rent an apartment?” That’s a question most people ask. Luckily, while a high score is important, it’s not the only thing landlords look at. Let’s break down what landlords consider so you know what you need to do to pass their sniff test. 

What Is a Credit Score?

Before our property management company in Washington, D.C. answers what credit score you need to rent an apartment, we need to first define what a credit score is to begin with. In simple terms, your credit score is like a quick snapshot of how consistently you have been able to follow through with your financial obligations. For instance, it reflects whether you pay your bills on time, how much of your credit you’re using, and if you have any outstanding debts.

As a rule, the higher your score, the more landlords trust you to handle your money responsibly. After all, prospective landlords don’t know you, your habits, or how reliable you are in paying bills. So, they need to use your credit score to get a better idea of what your financial behavior is like.

What Credit Score Do You Need to Rent an Apartment?

Now that we know what the definition of a credit score is, let’s now deal with what credit score you need to rent an apartment. Depending on the landlord or the location, this can vary. However, as a general rule, it works like this:

650 and below: Anything less than 650 raises a few eyebrows. Here, the landlord might assume there is some risk involved in choosing you.

650-699: If your score is 650 or higher, then you are within a much safer range. This score shows the landlord that you’ve been managing your finances well enough. In turn, that would give landlords peace of mind because you’ll likely pay your rent on time.

700 and above: This is an even better place to be. It really indicates that you’ve had a pretty steady and smooth financial status, making you a solid and worthy candidate.

750+: Wow, a score above 750! You’re in great shape! That score indicates a phenomenal record with both finances and rent-paying, which places you above many competitors in the realm of apartment renting.

If it all just seems like it’s not working in your favor, take heart: it’s not the end of the world. When landlords see that you are dependable in other ways, they might consider your application anyway. This gives rise to the very next question:

Can You Rent with a Low Credit Score?

Yes, you can get approved with a low credit score. While it’s more challenging—especially in a competitive market—you can still find a home. You just need to show you’re responsible in other ways. Then, you might find a landlord willing to rent to you. Here is how: 

Consider Renting with a Roommate

One solution to renting with a lower credit score is getting a roommate. Landlords might be more willing to accept your application if you share the rent with someone whose score is higher. On another note, you could move in with someone already living in a rental. Although the landlord may check your credit, they may be more flexible about your score since an established tenant is already taking on some of the rental responsibilities.

Get a Cosigner 

If your credit score isn’t quite up to par, you can still build trust with your landlord by getting a cosigner. For instance, you could ask a family member or close friend to agree to take on your rental responsibilities if you’re unable to. Typically, they’ll sign the lease with you, even though they won’t be living in the apartment. Having a cosigner or guarantor gives you a strong advantage when renting with a low credit score.

Offer a Larger Security Deposit

By offering a bigger security deposit, you help offset any financial risk the landlord might face. For example, let’s say the usual deposit is $1,000. Instead of that number, you could bump that rate to $1,500 or even $2,000. This way, the landlord can feel more assured that they have extra “insurance” of sorts to cover any what ifs. 

Factors Beyond Credit Scores That Landlords Consider

To shift gears a bit, let’s discuss some of the other factors landlords consider beyond just your credit score. There are other qualifications landlords seek that can’t be quantified by numbers. They also care about tenants’:

References and Rental History

If you’ve been a tenant before, having a great reference from your previous landlord can really boost your chances. They can vouch firsthand that you paid on time, maintained the property, and were an all-around good tenant.

Also, if you don’t have a rental history yet, there are other avenues you can take. For one, you could also ask a former employer to speak to your dependability. Either way, highlighting a solid rental history or recommendation letters shows landlords that you have a history of fulfilling your responsibilities. 

Clean Background Check

Having a clean criminal record can go a long way toward reassuring landlords. In fact, sometimes, this can matter more than your credit score. So, if you can confirm that your background is spotless, highlight this on your application to offset other areas where you might not be as strong.

Steady Income

It goes without saying that you can’t pay the rent if you don’t have a reliable income. Because of that, landlords and property managers put a lot of stake into your income status.

As a rule, landlords want tenants to have an income that is three times’ the rent. This way, you can still comfortably make the rent even when unexpected expenses happen. Proving your income’s stability you can make that happen work wonders towards convincing them to choose you. 

A sign pointing towards bad credit and a sign pointing towards good creditHow to Improve Your Credit Score for Renting

With some hard work, grit, and smart moves, you can start rebuilding your credit to be more landlord-friendly. 

  • Use a Secured Credit Card Wisely

If you’ve been avoiding credit cards because of past challenges, a secured credit card can be a game-changer. Essentially, these cards require you pay a deposit upfront and let you to build credit responsibly by keeping your balance low and paying off the card in full each month.

  • Set Up Automatic Payments for Bills

Missed or late bill payments can wreak havoc on your credit. To avoid this outcome, set up automatic payments for your utility bills, phone bill, or even that secured credit card. In general, making consistent, on-time payments is one of the quickest ways to boost your score.

  • Avoid Applying for Too Much Credit

While it’s tempting to apply for multiple credit cards or loans to boost your score, juggling too much at once can backfire. Furthermore, each hard inquiry dings your credit temporarily. So, be selective and only apply for credit when necessary, when you know you can handle it. 

  • Ask Your Previous Landlord to Report Past Payments

Believe it or not, some landlords may agree to submit your payment history to the credit bureaus. This could give you a near-immediate boost to your score. Or, you could try to do it yourself

Let Experts Help You Find Your Dream Home!

Yes, you can find a home even with a lower credit score. You simply may have to show your mettle with some exceptional rental references, a clean background check, and steady income. Those big 3 can go a long way in making you an attractive candidate for a rental.

At Bay Property Management Group, credit histories are just one of the tenant qualifications we factor in when we review applications. We consider all applicants equally, so you can rest assured that we will give your application a fair look. So, check out our listings today to start finding your next dream home!