If you came here looking for an answer to the question, “What Credit score is needed to rent an apartment?”, you’ve come to the right place. If you stumbled upon this information, you may be surprised to find out that a credit score is used when you apply to lease an apartment.
Before I talk about the credit scores that landlords like to see, I’ll touch on why landlords use credit scores. Landlords check credit as a way to see if you are dependable and trustworthy. If the landlord sees that you have been dependable in paying your other bills, they have more confidence that you will pay the rent on time. They also want to see if you can afford to pay the rent.
So…
What is the minimum score you can have to get that apartment?
First, there is no uniform score that all landlords look for in a potential renter. Furthermore, not all landlords do credit checks. But, many do, and I think that more and more will. In fact, I previously owned a rental property. It was my first rental property. When I was looking for tenants, in addition to checking their credit history, I would do a credit check on applicants. Therefore, I am sharing, based on what I did, but mainly the information that I was able to find through Landlord University.
According to Landlord University, the national average that landlords would like to see is 650. For landlords looking for an above average range, they look for tenants with a 700 or above range.
Another thing that you should know is that some landlords look at just your credit score, while others look at your report. A complete credit report gives more detailed information about your credit history. In fact, in some cases, your credit report will include information from previous landlords. But, not landlords report information to credit bureaus. Those who do report information such as: payment history, unpaid rent, broken leases, and evictions.
Is renting an apartment in your future?
Looking for an apartment to rent can be very exciting. But first things first. Spend time setting yourself up for success in being accepted, by making sure that your payment history looks good:
1) Always pay your credit card bills on time. It is best to pay off the entire bill each month. But, if you can’t, pay at least the minimum payment on time.
2) Pay down your debt. 3) Avoid applying for any new credit in the months leading up to your apartment search.
What credit score do I need to buy a house?
In order to buy a house, it is recommended that you have a credit score of at least 620.
Some landlords are looking for at least a 700 credit score. So, I would recommend at least a 700 credit score for buying a house also.
Keep in mind that those with credit scores in the lower ranges, even if they get a mortgage, will pay more for the mortgage.
How often should I check my credit score?
You should check your credit score once a month.
The federal government says that you should check it once per year. However, I think that that is not frequent enough to catch mistakes, or even worse, fraud.
Key Takeaways:
- You need at least a 650 credit score to rent an apartment.
- If you are dealing with a landlord who wants a tenant with a higher than average credit score, you need at least a 700 credit score in order to rent an apartment.
- Similarly, a 700 credit score will serve you well for acquiring a mortgage.
- No matter whether you are planning on renting or buying, check your credit score often, to know what it is, and if you need to work on it.
Do you still have more questions about credit scores? Check out some of my other bits of financial literacy.
What are Credit Score Ranges?What Is An Example of an Inquiry on a Credit Report? Rich Mom Answers
What Is a FICO Score? Rich Mom Answers
My name is Valerie, aka “RIch Mom.” Rich Mom Answers is a segment of the Rich Mom, Poor Kid blog that gives short answers to personal finance questions. The goal in Rich Mom Answers is to teach the vocabulary of financial literacy and to answer as many of the common questions that come up when thinking about finances.
What Am I Doing and Why?
I started sharing these bits of financial information in order to teach my daughter (aka Poor Kid), because I want her to get better with her finances and know how to create her own wealth. Because I am so annoyed that everyone isn’t taught financial literacy before graduating from high school, I decided that I wanted to share them with her friends, and you. The intended audience is financial literacy beginners. My goal is to inspire you to take control of your own finances so that you can make better decisions and have financial improvement.
If you like the financial literacy information that I have provided, I ask you to do three things:
1) If you know someone who may be looking for an apartment within the next year, please send a link to this post to them. 2) If you like this post, please hit the like button. 3) Please hit the subscribe button and follow, so that you don’t miss any of my future posts about financial literacy.
The information shared here is not intended as financial advice, just entertainment and encouragement.
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