What Is a Good Credit Score for Renting an Apartment?

Savvy landlords will investigate the credit scores of their tenants to get a better sense of their financial habits. Not all landlords or building management companies will do this, but many will. This can make it challenging for people with low or bad credit scores to get into the apartments that they want.

Identification

Any credit score below 620--which is actually considered good credit--could put you at risk for being turned down for an apartment. The best apartments have many potential renters vying for the lease. As landlords have limited time, one of the easiest methods that they have to sort applicants is by their credit scores. It is far more convenient for them to use the information available from those reports than it is for them to weigh how the various applicants present themselves.

Function

A credit score provides a basic sketch of a person's financial history. Any delinquencies, such as late bill payments, abandoned credit cards and other similar bad financial behavior, will be itemized on such a report. Any issues on the credit history can be used as valid reasons for rejecting a rental application. It helps to address all of the problems in your credit history before shopping for competitive apartment.

Features

This habit of examining credit histories before rentals can make it difficult for young people without established credit histories to get access to rental apartments. Luckily, there are alternatives to going through a landlord directly. The easiest alternative is to live with a roommate who holds a lease already. This cuts down on housing costs while allowing you to either repair or build up your credit history.

Considerations

If you would rather try all your options before attempting to improve your credit--and you have issues on your credit report--you can write an itemized letter to your potential landlord explaining every issue on the credit report and why it will not affect your ability to pay your rent on time. Include references from employers and former landlords to indicate your character and prove your ability to pay the rent on time. Be pro-active: If you have credit issues, bring them up to the landlord before they discover them on their own.

Prevention/Solution

Alternatively, you could get a co-signer for your lease. For young people, their parents often co-sign. Romantic couples in which there is a significant disparity in credit scores often have the partner with the stronger financial history co-sign the lease. Co-signers are legally obligated to pay the rent if the tenant does not manage to come through. This helps to alleviate anxiety that the landlord might have related to a low credit score.

Resources

• Apartments and Your Credit Report
• Apartment Living: Your Credit Score
• Renting With Bad Credit