Tenant Credit Checks (2024)

FAQs

What does a landlord see on a credit check? ›

On e-renter.com, for example, landlords request certain credit requirements, and the site tells them whether the tenant meets them. Reports may also include evictions, bankruptcies, collections and other background information.

Most apartment rental applications involve soft credit checks. Landlords are generally interested in assessing your financial responsibility and suitability as a tenant rather than conducting an in-depth examination of your credit history.

Can you get an apartment with a credit score of 500? Yes, you can. However, your options will be limited, and you may have to put down a higher security deposit or bring on a cosigner.

Write a letter of explanation detailing why your credit score is not very good. Include how you now have good budgeting habits and about your plans to be a responsible tenant. Landlords are free to waive their own requirements—as long as they treat all applicants the same way.

In general, landlords are unlikely to approve you with poor credit history, but might consider you if you can demonstrate current financial stability. The bottom line is that the score you need varies by location, but you're likely to get approved in most places if your score is at least 650.

Credit report and credit score: The landlord can check your credit report and credit score, looking for a history of on-time payments and red flags such as past-due accounts, accounts in collections and bankruptcies.

Most landlords partner with one of the three major U.S. credit bureaus: TransUnion, Experian, or Equifax. These background checks will actually reveal much more about a prospective tenant than just their credit score; the goal is to discover any suspicious financial activity in the applicant's background.

Generally, most landlords require applicants to have a credit score of at least 620 to be considered for rental housing. This means that if your FICO score is lower than 620, you may be denied an application or asked for additional security deposits or co-signers before being approved.

If you're on the hunt for a new apartment, a rental application may include a credit check. This can result in an inquiry on your credit report, which may cause a temporary dip in your score. Not all applications will result in a hard inquiry.

Renting an apartment with bad credit is possible, however, a low credit score will present challenges. It's important to show stable income and you might even need a co-signer or roommate. Take the time to work on improving your credit by paying all bills on time and reducing debt.

Can I rent with a credit score of 550? ›

Yes, you can rent an apartment with bad credit, but it may require additional effort, such as finding flexible landlords, offering a larger security deposit, or getting a cosigner.

If you regularly pay your rent on time and in full, you can have your good payment history reported to credit bureaus to help raise your credit score through a rent-reporting service. Know that any rent-reporting services could require a fee for the service, which is usually paid on a monthly basis.

If you're considering renting to someone with a low credit score, it's crucial to look at his or her income. Should the potential tenant have a reasonable salary or be working at the same job for more than a year, it's probably fair to consider this individual.

If you have a bad credit history, the landlord can decide not to rent to you, or can ask you to pay higher rent. If this happens, the landlord must give you the name of the credit reporting agency he used.

A hardship letter explains to a lender the circ*mstances that have made you unable to keep up with your debt payments. The letter provides specific details such as the date the hardship began, the cause and how long you expect it to continue. Many creditors will require a hardship letter if you request help.

Before you rent an apartment, the landlord can check your credit history. You may also be asked to pay a holding deposit. If a credit check is requested, the landlord will check your credit history through a credit reporting agency. Landlords usually do this before deciding if they will rent to you.

In addition to checking credit scores, landlords and property managers also might look at a potential tenant's credit reports. That's because credit reports can provide a more complete picture of the applicant's financial history.

In a credit check, a landlord is looking for a good credit history and on-time payments. They're also looking to see if a potential tenant has been previously evicted or has declared bankruptcy, which may influence their decision to rent.

Some reports drill down even further into each account, noting if you made payments on time, and, if not, how late you paid. It will give the landlord a clear picture of your financial history—including debt and how regularly you paid your bills. It also includes your credit score.