What Credit Score Do Landlords Check?

Landlords use credit checks in the rental application process. These checks provide insight into a tenant’s financial conduct, helping property owners assess the likelihood of timely rent payments. This process minimizes financial risks associated with leasing, such as missed payments or property damage.

Credit Scores Landlords Consider

No single credit score is required; requirements vary by location, property type, and market demand. A common range for an acceptable score to rent an apartment typically falls between 600 and 750. Recent data indicates the average credit score for U.S. renters is around 638, though some sources suggest it can be closer to 650. Landlords managing luxury properties or those in competitive urban areas might seek scores of 700 or higher, while properties in less competitive markets may accept scores closer to 620.

While various credit scoring models exist, such as FICO and VantageScore, landlords are concerned with the score as an indicator of financial standing. A score below 580 is considered poor and presents challenges securing a lease, as it often suggests a higher risk of financial difficulty. Landlords may have minimum score requirements, but they also consider the broader context of an applicant’s financial profile.

Information Landlords Review on Credit Reports

Beyond the numerical score, landlords examine details within a credit report to understand an applicant’s financial habits. Payment history is a primary focus, revealing whether past debts, such as credit cards, loans, and utility bills, have been paid on time. Late payments, accounts in collection, or loan defaults indicate potential payment issues.

The report also details an applicant’s debt levels, including outstanding balances and credit utilization, which is the amount of credit used relative to available credit limits. High debt levels can signal that a tenant might struggle to consistently afford rent alongside other financial commitments. Public records, such as bankruptcies, tax liens, and civil judgments, are also disclosed, providing information on severe financial distress. While evictions themselves may not directly appear on a credit report, unpaid rent or fees resulting from an eviction can become collection accounts, thereby reflecting on the report.

How Landlords Evaluate Rental Applications

A credit check is one component of a broader review process for rental applications. Landlords assess other factors to determine a tenant’s suitability. Income verification is required to ensure the applicant can afford the rent. Landlords often request documentation such as recent pay stubs, W-2 forms, or bank statements to confirm employment and income. A common guideline is the rent-to-income ratio, where an applicant’s gross monthly income should be at least two and a half to three times the monthly rent.

Rental history is another consideration, verified by contacting previous landlords. This allows landlords to inquire about payment consistency, lease terms, property maintenance, and any prior eviction filings. Background checks, which can include criminal history, are also conducted to assess safety and risk. Landlords weigh all these elements—credit, income, rental history, and background—together to make an informed decision on an applicant’s reliability and financial stability.

Strategies for Applicants with Varying Credit Scores

Prospective tenants with lower credit scores can use several strategies to strengthen their rental applications. One approach is offering a larger security deposit than requested, or proposing to pay several months’ rent in advance where legally permissible. These actions demonstrate financial capability and provide the landlord with additional security.

Another option is to provide a co-signer or guarantor on the lease. This individual agrees to be financially responsible for the rent if the primary tenant fails to pay, providing assurance for the landlord. It is important for the co-signer to have a strong credit history and sufficient income. Applicants can also gather strong references from past landlords, employers, or personal contacts to vouch for their reliability. Providing a letter of explanation for any past credit issues, detailing circumstances and improvements, offers landlords a clearer picture and demonstrates accountability.