Did you know the difference between an excellent credit score and a good one may make or break your chances of renting an apartment? Show
Assume for a moment you and another applicant are looking at the same apartment. You have a good score (700s), while the other guy has an excellent score (800s). Everything else, like finances, being equal, it would make sense for the landlord to choose the other guy with the higher credit score. If you're dealing with a bad score or no credit score at all, you'll probably have a harder time renting an apartment. It's probably best to hold off until you can raise your score. What is a credit score?Your credit score is a rating, ranging from 300 and 850, based on the strength of your credit history. Your credit score is important for many financial reasons and when it comes to renting an apartment, landlords can use your credit score as a quick way to quantify how “risky” of an investment you are. A high credit score indicates low risk and good payment history, while lower credit scores mean you might have to pay higher interest rates to offset the additional risks. These five main factors determine your credit score:
What credit score do you need for renting an apartment?Generally, you’ll want a minimum credit score to rent an apartment of 620 to 650. Landlords or property management companies want reassurance that you can pay your rent on time and you're responsible, and a solid credit history and excellent credit score are two ways to show this. The general range of FICO credit scores are as follows:
Although a score of 620 would be considered a fair credit score for renting, it's definitely not the best score you can get. If your credit falls in this range you may want to work to improve it. What credit score do landlords look for?So, what credit score is needed to rent an apartment? There's no single number, but just to give you an idea, you're probably going to need a 740 score or higher to rent in a hot rental market. Landlords in desirable and competitive markets like San Francisco or New York may sometimes even require a minimum credit score to be able to rent in their buildings — and generally speaking, the higher the rent, the better credit you'll need. Can you get an apartment with a credit score of 500?If you have a lower credit score, then landlords see you as high risk and are less likely to rent to you. A score of 500 is considered poor, so you’ll likely struggle to rent an apartment — if your credit score is this low, you may want to consider getting a guarantor to sign the lease with you. What other factors do landlords look at?In addition to looking at your credit score, landlords also want to review your credit reports for red flags. Landlords want to be able to accurately assess the risk of renting to you, so they’ll likely look at more than just your credit score to rent to you. Other facts they might look at include:
How to raise your credit scoreIf you want to raise your credit score before you search for an apartment, here are some quick tips to help you out:
You might qualify for lower interest rates for credit cards, a mortgage, car loan or even that charming rental in that cute little tree-lined neighborhood if you have a higher credit score. 7 tips for renting an apartment with bad creditIf you don't have time to improve your credit score for renting an apartment, here are a few tactics you can also try to persuade your potential landlord to rent to you.
Bottom lineMonitor your credit score regularly. Some banks and credit card companies offer this service for free. In addition, review your credit report periodically. The three bureaus provide a free credit report every year. Stagger the reports so you can check up on any suspicious activity, such as a credit card account that may have been opened in your name. Monitoring your credit and working to improve it may help your chances of renting an apartment, especially if you want to rent in a big city. Ready to find your perfect apartment? Check out our apartment finder to get started today. The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.What is the lowest credit score to rent an apartment?What Credit Score Do You Need To Rent an Apartment? While a FICO credit score from 580-669 is considered fair credit, 620 is often the minimum credit score you'll need to rent an apartment. If your score is lower than 620, it could be more difficult to rent an apartment.
What credit score do most apartments approve?When you apply to rent an apartment, you can expect nearly all landlords to run a credit check. As a general rule, you'll want a credit score of 620 or higher to secure a rental.. Exceptional: 800 to 850.. Very Good: 740 to 799.. Good: 670 to 739.. Fair: 580 to 669.. Poor: 300 to 579.. How long does it take to get a 620 credit score?It will take about six months of credit activity to establish enough history for a FICO credit score, which is used in 90% of lending decisions. 1 FICO credit scores range from 300 to 850, and a score of over 700 is considered a good credit score. Scores over 800 are considered excellent.
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