Finding an apartment can feel like an impossible task, especially if you have a less-than-perfect credit score. Landlords often check credit reports as part of the rental application process to assess a potential tenant's financial reliability. But even with bad credit, you’re not out of options!
Bad credit and renting an apartment may feel like a bad match, but there are ways to overcome this challenge. By understanding why landlords consider credit scores at all, and exploring alternative approaches to build trust, you can improve your chances of getting approved for a lease.
We’ll cover what you need to know about credit—and most importantly, how to get approved for an apartment with very bad credit.
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About your credit score: All you need to know
A credit score is a numerical rating that represents an individual's creditworthiness, or how likely they are to repay debt on time.
“It's important to note that a credit score is not uniform and can differ by region, area and even some other minor parameters,” says Jonathan Ayala, real estate salesperson and founder of Hudson Condos.
That said, credit scores typically range from 300 to 850. A higher score indicates stronger credit and a lower risk to lenders, while a lower score suggests a higher risk of missed or late payments.
Lenders, landlords, and others use credit scores to help make decisions about loans, rental applications, and even job offers. Understanding what counts as good and bad credit can help you gauge where you stand.
In the U.S., credit scores typically fall into the following ranges:
- Excellent (800-850): This is the top tier, where tenants usually have no issues securing an apartment.
- Very good (740-799): People in this range are also likely to be seen as reliable.
- Good (670-739): This range is considered acceptable, though some landlords may have extra requirements.
- Fair (580-669): This range may start to raise concerns for landlords.
- Poor (300-579): This is considered bad credit for apartment rental, and landlords generally view tenants in this range as higher risk.
How credit scores are calculated?
Knowing what factors affect your credit score can help you take actionable steps to improve it.
- Payment history (35%): Timely payments on loans and credit cards positively impact your score.
- Credit utilization (30%): How much of your available credit you’re using. Keeping utilization below 30% is ideal.
- Credit history length (15%): The longer your credit history, the better.
- Credit mix (10%): A variety of credit types, like loans and credit cards, can improve your score.
- New credit (10%): Opening new accounts can temporarily lower your score due to hard inquiries.
Why your credit score matters when it comes to getting an apartment
Credit scores are a quick way for landlords to gauge a tenant’s financial health and reliability.
“Credit scores can prove to be crucial since landlords and various experts in property management assess the likelihood of someone defaulting on their rent using their credit scores,” Ayala says. “Your credit rating has the power to determine if you will be approved, the deposit to be paid, or additional clauses which may need to be fulfilled on the lease agreement.”
A high credit score can give you an edge, showing that you’ve managed your finances responsibly. On the other hand, a lower score may raise concerns for landlords about potential missed or late payments, so you might get denied apartment due to bad credit.
Even if you’re a responsible tenant, getting an apartment with bad credit can be harder without further steps, like adding a co-signer or paying a higher security deposit (more on this below).
Can you rent an apartment with bad credit?
“While a score over 700 generally looks good—showing you have a record of managing debt, paying bills on time, and handling your finances responsibly—a score below 600 often raises concerns, as it can suggest past difficulties in keeping up with payments, making landlords a bit cautious,” says Rachel Stringer, a professional real estate agent at Raleigh Realty.
With a score below 580, renting becomes more difficult, but it’s still possible if you take certain steps.
How to rent an apartment with bad credit
Renting an apartment with bad credit typically takes some extra work, but it's definitely possible with the right approach. In many cases, landlords are willing to work with tenants who demonstrate reliability and financial stability in other ways. To improve your chances, you may need to provide additional documentation, find a co-signer, or offer a larger security deposit.
Here are some effective strategies for how to get approved for an apartment with bad credit:
1. Consider a co-signer
A co-signer with a strong credit score can reassure landlords about your ability to meet rent obligations. They’ll be legally responsible if you fail to pay, giving landlords peace of mind.
2. Offer a larger security deposit
Offering an additional month or two of rent upfront can make landlords feel more comfortable renting to you.
“Paying rent in advance is another practical step,” Stringer says. “If you can cover a few months’ rent up front, it demonstrates financial stability. It won’t change your credit score, but it can reduce the landlord’s concerns about getting paid.”
3. Provide references
Gather references from past landlords or employers who can vouch for your reliability and responsibility. Character and rental history references can build trust with potential landlords.
For a little extra guidance, read this next: Credit Reference Letter: What It Is and How to Get One
4. Show proof of income
If you have a steady income that can comfortably cover your rent, provide recent pay stubs or a bank statement. This can demonstrate your ability to pay rent on time, even if your credit is low.
“Offering proof of a steady income stream can convince the prospective landlord of tenancy,” Ayala says. “Reiterate your employment as it is a reasonable compensation when the credit score is low.”
5. Look for no-credit-check apartments
Some landlords or property management companies don’t require a credit check. While these apartments for people with bad credit may have different requirements or be more flexible, they’re often competitive, so start your search early.
6. Negotiate shorter lease terms
A shorter lease, such as a six-month rental, may be less risky for landlords, especially if they have reservations due to your credit. This allows you to prove yourself as a reliable tenant, after which you may be able to renew with better terms.
7. Explain your situation with a letter
Sometimes, life events like medical emergencies or temporary unemployment lead to credit issues. Writing a letter explaining the circumstances behind your credit can provide context and demonstrate your commitment to being a responsible tenant moving forward.
“Being upfront with the landlord is often worth it,” Stringer says. “For example, if your credit took a hit due to something specific, explaining it can help. Landlords sometimes recognize that a low score isn’t always due to careless financial behavior and may be open to considering your situation.”
Also, some property websites, such as Second Chance Apartments and OneApp Guarantee, now offer listings for bad credit apartments, which are rental apartments that accept bad credit available to tenants with lower credit scores.
Bonus tips for improving your chances of getting approved
If the usual apartment-hunting strategies aren’t working for you, try these other tips for how to get an apartment with bad credit.
- Look for private landlords. Smaller landlords, especially those renting out single units, may be more flexible on credit requirements compared to larger property management companies.
- Build a savings buffer. Having a few months of rent saved up can make landlords feel more secure. It also gives you peace of mind as you navigate the rental process.
- Get rental references. If you’ve been a reliable tenant in the past, ask former landlords for a reference letter. Good rental history can carry significant weight, even with a low credit score.
- Work on improving your credit. While you’re applying for apartments, keep working on improving your credit by paying down debt, reducing utilization, and making all payments on time. Even small improvements can open doors over time.
- Avoid applying for multiple rentals at once. Each credit inquiry can slightly lower your score. Limit the number of applications to avoid additional credit dings.
Being transparent and proactive can go a long way in proving your reliability as a tenant. Focus on building strong references, saving up extra funds, and improving your credit to make yourself a more attractive candidate.
While a low credit score may present a challenge, it’s just one part of the rental picture. With the right approach, you’ll find options that work for you and help you secure a comfortable place to call home.
FAQs
Will paying rent on time help my credit score?
It can, especially if you use rent-reporting services like RentTrack or LevelCredit to have your payments reported to credit bureaus, contributing to your credit history and potentially boost your score.
Should I disclose my credit score to a landlord upfront?
It’s often wise to address your credit issues early on, either by explaining your situation or discussing alternatives like a co-signer or extra deposit.
Do all landlords check credit?
Not all do, but most larger property management companies will. Individual landlords are sometimes more flexible, making it easier to negotiate.