Business Insider
Back to Top A white circle with a black border surrounding a chevron pointing up. It indicates 'click here to go back to the top of the page.'

Credit needed to rent: Understanding requirements for tenants

Couple tours apartment
You usually need a credit score of at least 670 to rent an apartment, though requirements vary by landlord. sturti/Getty

  • Credit score requirements for apartments vary by landlord, but most require at least a 670.
  • Landlords can also view your credit report for any delinquencies or accounts in collections.
  • If you have a low credit score, landlords may ask for upfront payments, guarantors, or references.

Your credit score measures how responsible you are with your finances and debt repayments. These are often used by lenders to assess the risk you pose as a borrower. However, landlords can also look at your credit report and make rental decisions based on your credit score.

What credit score do you need to rent?

While there's no universal minimum credit score to rent an apartment, landlords generally prefer applicants with a good credit score, which is at least 670. Of course, having a low credit score doesn't automatically disqualify you from renting an apartment, but a solid score will give you a higher chance of getting the keys. 

While your credit score will suffice for some landlords, under the Fair Credit Reporting Act, landlords are also allowed to view your credit reports. This does not result in a hard inquiry on your credit report. Instead, it will appear as a soft inquiry, which does not affect your credit score. 

How credit affects rental approval

Landlords check your credit reports for the same reason lenders do: to assess your ability to pay bills on time and how risky you are to work with. To determine this, they'll look for a few pieces of information:

Your rental and payment history

If you have a history of paying rent late or defaulting on loans, your landlord may view you as a risky potential tenant and deny your rental application. 

Collection items and public records

Evictions, unpaid utilities, accounts in collections, and bankruptcy can all leave a stain on your credit report for up to seven years, sometimes even 10. These negative items are often deal breakers for landlords.

Before submitting your rental application, request a free copy of your credit reports from the three major credit bureaus — Experian, Equifax, and TransUnion — at AnnualCreditReport.com so you know exactly where your credit stands. 

Factors landlords consider beyond credit score

You can still find an apartment to rent despite having a less-than-ideal FICO score. Here are a few strategies to try: 

Check all your credit scores

With three credit bureaus and multiple iterations of credit scoring algorithms FICO and VantageScore, you'll have multiple credit scores to choose from and some may be higher than others. While you won't see an immense difference between your credit scores, you may see 10 to 20-point variations that could make the difference between a fair and good credit score. 

Pay more upfront

One way to make landlords less hesitant about renting to you is by offering a higher security deposit or paying a few months' rent upfront. This way, in the unlikely event that you default on your lease, your landlord will have more money to cover losses. 

Get a guarantor

 A guarantor signs your rental agreement with you and promises to pay your rent if you default. They are another way to make you a more attractive applicant, as they assure your landlord that rent will be paid one way or another. Guarantors can be family members, friends, or a third-party service. However, the income requirements are often much higher for guarantors than tenants. 

Prove your stable income

If you can demonstrate that you make at least three to four times your rent and have been earning a stable income for some time, landlords may view you as a more trustworthy tenant. 

Get references

Having previous landlords vouch for you is another way to convince future landlords that you're a responsible tenant despite your low credit score. 

Find a roommate

If your roommate has an excellent credit score, landlords may be willing to overlook yours. Having a roommate also increases the overall qualifying income on your rental application. 

How to improve your credit score for renting

If your credit score isn't stellar right now, don't worry. Here are a few steps you can take to improve your credit score and make yourself the ideal candidate for an apartment. 

Improve your credit utilization

Credit utilization refers to the ratio of your current credit balances to your credit limits. For example, if you have a total credit card balance of $1,000 and a total credit limit of $5,000, your credit utilization would be 20%. Most financial experts recommend keeping it under 30%, though the lower the better.

"You could improve your credit utilization by paying down existing debt or asking for higher credit limits," suggested Kendall Meade, a financial planner at SoFi. Note that some credit card companies may increase your credit limits automatically, but for others, you may have to call in to request it. 

Build out your credit history

Building credit often takes time. As a result, younger consumers generally have lower credit scores than those with more extensive credit histories. The average credit score of a Gen Z consumer is 680 compared to the average baby boomer's credit score of 745. 

There are tools that can help you build credit. Credit builder loans and rent reporting companies can help you add credit history to your credit report. Using these products, you can build credit without the temptation to overspend that comes with a traditional credit card.

Both the best credit builder loans and the best rent reporting companies will report your payments to all three credit bureaus. 

Sign up for credit monitoring programs

Credit monitoring services like CreditWise and Aura can keep you updated on where your credit stands. Though these services won't directly help you build credit, keeping track of your credit score is a crucial part of the credit-building process. Some of the best credit monitoring services are even free.

Don't open any new accounts

 While opening a new account may positively impact your total credit availability, "it will lower the average age of your accounts and result in an inquiry, both of which lower your score," warned Jay Zigmont, PhD, CFP®, Founder and CEO of Childfree Wealth. If you know you're going to be applying for an apartment, Zigmont suggests that you refrain from opening any new credit accounts for six months beforehand.

Pay bills on time

Your payment history accounts for 35% of your credit score, making it the most influential factor. If you often forget to pay rent, credit card payments, or utilities on time, set up automatic bill payments through online bill pay so you never have to worry about accidentally missing a payment. 

Renting with bad credit: What are your options?

Emphasize excellent rental payment history

If you have bad credit but have never paid your rent late, make sure your potential landlord knows that. Improving your credit takes time and your credit score could be on the low side for various reasons, like illness or a previous job loss.

Renting from a private landlord

  If your credit isn't the best, working with a private landlord who wants to make sure that they have a tenant might work out better than a large apartment building that has a management company and multiple tenants. You may also be able to talk one-on-one with a private landlord and explain your situation and commitment to paying your rent on time. 

Frequently asked questions about apartment credit score requirements

Can you rent an apartment if you do not have credit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Yes, you can rent an apartment if you do not have credit. Not all landlords have credit score requirements. Some landlords may rent apartments to those without a credit history, but they'll typically ask that you provide recent pay stubs or bank statements to show a steady income stream. Some may also require you to make a large security deposit or pay several months' rent upfront. 

Is 670 a good credit score to rent an apartment? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Yes, 670 is a good credit score to rent an apartment. However, a good credit score doesn't mean you're immediately approved for an apartment. You'll still need to demonstrate other aspects of your financial stability and provide relevant documentation, which may include proof of income and references. Landlords considering multiple applications may opt for someone with a higher credit score.

How can I improve my credit score quickly to qualify for a rental? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

You can improve your credit score quickly to qualify for a rental by lowering your credit utilization. Most financial experts recommend having a credit utilization of 30% or lower. Pay down the amounts that you owe on your credit accounts. You will see an immediate improvement (not perfect credit, but better). 

Jump to

  1. Main content
  2. Search
  3. Account