Timely rent payment is one of a landlords biggest concerns. So, to better evaluate which applicants are most likely to pay on time, landlords may use credit information to screen tenants. If youre wondering about the credit information youll need for your next rental, heres what you need to know.
Tenant credit checks are different from traditional lending credit checks that measure your creditworthiness—or how risky of a borrower you are. Landlords focus more on your actual credit information rather than deciding rental agreements based on your credit score alone.
When credit scores are considered as part of your overall credit information, a score above 670—on a FICO® Score range of 300 to 850—generally indicates good creditworthiness. However, you shouldnt focus on a specific credit score number. The cutoff can vary depending on the apartment, your local rental market, your income, and the rent. As a reminder, your FICO Score does not consider your income in its calculation, so thats something the landlord will factor into their decision separately.
A credit score below 670 doesnt automatically mean your application will be denied, but a landlord may take a closer look at your credit details if your score is in the mid-600s and below. In a competitive rental market, the higher your credit score, the better.
When applying for an apartment, one of the key things potential landlords look at is your credit profile. Most landlords will check your credit score and history to help determine if you’d be a good tenant. But when it comes to credit, many renters have questions about exactly what landlords look at. Do they check your FICO score? Your credit report? Or something else?
I’ve rented apartments for years so I understand the anxiety around the application process. Let’s break down what property managers and landlords look at when it comes to your credit.
How Do Landlords Check An Applicant’s Credit?
There are a few primary ways landlords can access a renter’s credit information
- Using a landlord association service
- Utilizing a tenant screening service
- Pulling credit reports directly from the credit bureaus
Landlord Associations
Some landlords get credit reports through landlord groups and associations. For example the National Association of Independent Landlords allows members access to tenant credit reports.
These credit checks from associations may be “hard pulls” that can temporarily drop your credit score a few points.
Tenant Screening Services
Many landlords use tenant screening services to access applicant credit data. These services can provide info like:
- Credit reports
- Background checks
- Eviction records
- Bankruptcy history
- Rental history
Some just show whether an applicant meets the landlord’s pre-set credit score parameters.
The Credit Bureaus
Landlords can also pull credit directly from Equifax, Experian, and TransUnion. These are usually “soft pulls” that don’t impact your score.
In some cases, the renter has to initiate it and provide the report to the landlord.
FICO Scores vs. VantageScores
When a landlord checks your credit, they may see either your FICO score or your VantageScore. FICO scores are more commonly used.
Credit Scores From Associations
It depends on the association’s practices. They may provide FICO scores, VantageScores, or both.
Credit Scores From Screening Services
Again, it depends on the service. But most seem to utilize FICO over VantageScore.
Scores From the Credit Bureaus
- Equifax provides FICO scores
- Experian provides VantageScores
- TransUnion offers a “ResidentScore” for predicting eviction risk
So if a landlord uses Equifax, they’ll see your FICO score. If they use Experian, they’ll get your VantageScore.
What Landlords Look For in Credit Reports
While the credit score provides a quick snapshot, smart landlords dig into the full history. Things they look for:
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Payment history – The last 2 years. They want to see consistent, on-time payments.
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Rental history – If available, info on past rent payments.
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Collections – Medical bills are viewed differently than unpaid utilities.
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Public records – Bankruptcies and evictions are red flags.
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Credit limits and balances – High balances and limits can indicate risk.
So they look beyond just the score to your overall responsibility with credit.
What’s the Minimum Credit Score For Renting?
There’s no universal minimum score to rent an apartment. Every landlord sets their own standards.
But in general, you’ll want your score to be over 600. The higher your score, the less risky you seem as a tenant.
FICO and VantageScores range from 300-850. Scores above 700 are considered excellent credit.
Can I Rent an Apartment With Bad Credit?
Having poor credit doesn’t automatically disqualify you from renting. Some landlords may look at your full application, not just your score.
Explain any credit issues – a past illness or job loss. Provide income proof and strong references. Offer to pay more upfront. Use a co-signer.
There are ways to overcome low credit scores when apartment hunting.
Key Takeaways
- Landlords often check FICO scores but may see VantageScores
- They look for good payment history and want to avoid collections
- Minimum score requirements vary but 600+ is best
- You can still rent with low credit through other application factors
- Improving your credit now helps future apartment searches
The apartment application process can seem mysterious. But you can take control by monitoring your credit report and scores. Then you’ll know exactly where your credit stands when meeting landlords. With some work over time, you can build and maintain strong credit to make renting smooth.
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Timely rent payment is one of a landlords biggest concerns. So, to better evaluate which applicants are most likely to pay on time, landlords may use credit information to screen tenants. If youre wondering about the credit information youll need for your next rental, heres what you need to know.
Tenant credit checks are different from traditional lending credit checks that measure your creditworthiness—or how risky of a borrower you are. Landlords focus more on your actual credit information rather than deciding rental agreements based on your credit score alone.
When credit scores are considered as part of your overall credit information, a score above 670—on a FICO® Score range of 300 to 850—generally indicates good creditworthiness. However, you shouldnt focus on a specific credit score number. The cutoff can vary depending on the apartment, your local rental market, your income, and the rent. As a reminder, your FICO Score does not consider your income in its calculation, so thats something the landlord will factor into their decision separately.
A credit score below 670 doesnt automatically mean your application will be denied, but a landlord may take a closer look at your credit details if your score is in the mid-600s and below. In a competitive rental market, the higher your credit score, the better.
What Goes Into a Rental Credit Check
Landlords look at more than just your credit score to evaluate your rental application—thats if they factor in your credit score at all. Some landlords 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.
Your credit doesnt have to be spotless to get approved for an apartment. A couple of late payments or high credit card balances may not be grounds for rejection. However, having an eviction in your record puts you at a higher risk of having your application rejected, especially if you still have an unpaid balance related to the eviction. You might also find it harder to get approved if you have other serious delinquencies like loan default, bankruptcy, foreclosure, repossession, or charge-offs.
Do Apartments Check Your Credit Score? – CreditGuide360.com
FAQ
Do apartments look at FICO scores?
Can you be denied an apartment because of your credit score?
What FICO score do you need to rent?
The credit score needed to rent an apartment varies depending on the landlord and location. Landlords typically look for a credit score of 620 or higher.
Can you rent an apartment without a FICO score?
Most large property management companies require a credit check as part of their application process. However, some individual landlords, who own one or a couple of rental properties, might let you rent without established credit. Generally, these individual landlords will still ask you to prove income stability.
Do apartment credit checks affect my credit score?
Regardless of how long your apartment search takes, your credit score should not be impacted by your apartment credit checks. Other credit scores, like the VantageScore credit scoring model, consider all inquiries made within 14 days of rate shopping as a single inquiry, no matter the type of credit application.
Do landlords see a FICO score?
That being said, FICO scores are more commonly used by landlords than the VantageScore model. If your landlord is using Equifax to check your credit, they’ll see a FICO score. If they use Experian, they’ll see a VantageScore.
What happens to my credit score if I apply for an apartment?
Your credit score is usually left unchanged when applying for an apartment, unless you applied for a new line of credit during the same time period. How Do Landlords Check Your Credit?
Can a low credit score get you an apartment?
Even what you may consider a low credit score could count as fair enough to get you an apartment when combined with the rest of your rental history and a strong background check. There’s also the fact that multiple credit checks won’t always pull the same number, so one reporting agency could end up giving you a higher score. According to Equifax:
What credit score do you need to rent an apartment?
Though there is no set credit score minimum for renting an apartment, many landlords will look for a score of at least 600. That being said, you’ll typically find that most landlords and property managers will want you to have a credit score above 600. Both FICO scores and VantageScores range from 300 to 850.
What is an apartment credit check?
An apartment credit check is a screening process landlords use to evaluate a prospective tenant’s financial reliability. By reviewing an applicant’s credit history and credit score, landlords can assess the likelihood of on-time rent payments and overall financial responsibility. This check helps landlords minimize risks when selecting tenants.