Renting an apartment with a low credit score can be tough. But what credit score do you need to rent an apartment? There are a few ways to look at this answer.
As a renter, you can often still qualify to rent an apartment if your score is less than perfect. From getting a co-signer to boosting your credit score quickly, here’s our go-to guide to renting and credit.
The Best Credit Score for Renting
Landlords will want a good credit score to qualify for an apartment. Your landlord wants you to be creditworthy to show you can pay your rent on time.
In terms of credit, an exceptional score is 900 to 760. A score that is very good is 725-759. 660-724 is considered a good score.
A fair credit score is between 660 and 560. A very poor score is between 300 and 559. With either of these scores, it can be a lot harder to qualify for a rental.
In order to qualify for an apartment, you’ll want your score to be over 670. The higher your score, the more favorable your lease terms will be. You’ll get approved quicker and can even see a discount on rent.
Minimum Credit Score to Rent an Apartment
The minimum credit score you’ll need to rent an apartment will vary depending on where you live. Market conditions will often impact credit requirements.
If the housing market is down, credit requirements will be higher. Landlords need to take less risk with tenants. If the market is up, landlords might be more lenient with a small group of renters.
The same goes for inventory. If there aren’t a lot of rentals on the market, your landlord has more options when it comes to tenants. They’ll choose someone with a higher score.
Why Your Credit Score Matters?
Your credit matters when it comes to renting an apartment. If you have a low credit score, your landlord might not be sure about your ability to pay. The higher your score, the more trustworthy you look.
A high credit score means you pay your bills on time. It also shows you have a long credit history. A low score is a risk for a landlord.
If your landlord has a lot of inventory, they might make more exceptions for renters with low scores. They could be more willing to take a risk if they need to fill spaces.
Your credit score affects other aspects of your life as well. Employers may run your credit when you apply for a job. You’ll also have to show your credit score when you buy or lease a car.
After you’re done renting, credit is one of the biggest factors to qualifying for a mortgage. The higher your score is the better interest rate you’ll receive.
How to Improve Your Credit Score
Improving your credit will greatly help your financial future. To improve your credit, the most important thing you can do is to lower your debt. The less debt you have, the better your debt to income ratio is.
Start by paying off your smallest debts first. Focus on high-interest debt next. This will save you hundreds of dollars or more on interest fees.
To help make sure you don’t rack up more debt, pay in cash whenever possible. Cash will keep you from using your credit cards or going over your budget.
Using a short-term loan can be helpful to pay off or consolidate debt. This can be especially helpful when you have a high-interest credit card, for example.
Just a few small changes can improve your credit score quickly. The more debt you can pay down or remove, the higher your score will climb.
Renting with a Poor Credit Score
If you have a low credit score, there are still ways you can qualify for an apartment. The first way is to get a co-signer. You can use a parent or partner to co-sign with you if they have a high credit score.
Your landlord will use their score when qualifying you for the apartment. Just make sure to choose someone you know has great credit. You might also be able to put the apartment in their name and you sublet the unit from them.
If you have a high earning career, you may also qualify for an apartment with a low score. Showing your income will help offset a poor credit score. Your landlord will see you’re able to cover your rent and your score won’t be as big of an issue.
You can also qualify if you ask about paying a higher security deposit. With a low score, this might help put your landlord’s mind at ease. Speak with them about your concerns and ways to help you get the apartment.
What Credit Score Do You Need to Rent an Apartment?
So what credit score do you need to rent an apartment? This answer will look different depending on a number of factors. The real estate market, apartment inventory, and your other qualifications all make a difference.
To help your chances of qualifying, try and boost your score before you apply. Consider getting a co-signer or putting down a higher security deposit to help your chances.
If you’re looking to pay down debt, fill out the contact form here. A short-term loan can help you consolidate or pay off your debt and even boost your credit score.
