Photo by Pranithan Chorruangsaks Images from Pranithan Chorruangsaks via Canva.com
What you’ll find in this article:
Let’s talk about your credit. No one wants to, but it’s necessary. Your credit score is a reflection of how well you manage your finances, so it matters when buying or renting a home.
The number carries a lot of weight, and unfortunately, it’s easy to lower but harder to raise. Nearly everything affects your credit score, including payment history, credit card use, and debt. But other factors, such as a recession or unexpected expenses, are out of your control.
That said, your credit score doesn’t always tell the whole story. It’s very good at highlighting the negatives but not the why behind it. For example, maybe you pay cash for everything, which leads to little to no credit history.
What credit score is required to rent an apartment? If your score isn't perfect, how can you still find a place to rent?
What's Considered a Bad Credit Score for Renting?
When renting a home, credit history plays a role, but the standards aren’t normally as high as they are for buying a home. Landlords typically want a minimum score of 620, although the credit score isn't the only factor they consider. Part of the steps of renting a house is knowing what’s included in a credit check and how other factors, like income, references, and a background check for renters, play into the decision.
Landlords often use a rent-to-income ratio calculator to confirm that your income supports the rent amount. The standard rent-to-income ratio is around 30%, meaning your rent shouldn’t exceed 30% of your gross monthly income. If your ratio falls in that range or under it, it can strengthen your application even if your credit score is on the lower side.
Can You Rent a Home with a Bad Credit Score?
Yes, you can rent with bad credit, but it may take a bit more effort. That doesn’t mean every applicant with poor credit will qualify, but credit is only one piece of the screening process. A thorough background check gives landlords a fuller picture of your history. Even with a low credit score, steady employment, a positive rental track record, or strong references can help strengthen your application.
As former property manager Emery Popoloski explains,
“Sometimes a tenant may have a bad score due to a rough period in life, like job loss or divorce, and we’ll look at other factors such as rent to income and debt ratio before deciding.”
That’s why understanding your rent-to-income ratio and showing proof of stability can help you stand out from other applicants.
Photo by ryandebehardinis photos via Canva.com
What Credit Score Do You Need to Rent an Apartment?
There’s no single number that guarantees approval, but as mentioned above, most property management companies prefer to see a credit score of 620 or higher, as it indicates that you generally pay bills on time and manage credit responsibly.
That said, some landlords may be stricter, especially in competitive markets, while others focus more on income, rental history, and references rather than on the credit score alone.
If your score falls below 620, it doesn’t mean you can’t rent. You may just need to take additional steps to strengthen your application. Options like offering a larger security deposit, showing proof of stable income, or using a co-signer can help reassure potential landlords.
Ways to Rent When You Have a Bad Credit Score
Renting a home with bad credit is possible. The key is preparation.
- Show proof of consistent income
- Have a cosigner
- Find a rental that doesn’t check credit
- Provide stellar recommendations
- Be willing to pay more
- Rent on base if available
It’s also important to stay within your means. Many landlords use a rent-to-income ratio calculator to confirm your ability to make rent payments. If your ratio is too high, try finding a lower-cost property to avoid rejections. Being proactive and transparent during the background check for renters can also help build trust with potential landlords.
“It's all about being able to explain with the proof. No one wants an applicant with a 780 credit score with five late charges or a 520 with ten late charges as current as five days ago. That being said, most people will work with you. The key is renting within your means and explaining yourself. It’s also important to note that if you're a slightly less desirable applicant, you might have to go after the properties with less competition and therefore have a landlord who is willing to work with you. For example, a landlord with ten applications for a property that's been on the market for three hours will be less willing to accept you than someone who has zero applications and a property that’s been on the market for four weeks.” -Elizabeth Cosgrove, The Reluctant Landlord
Consider a Rent-to-Own
If your long-term goal is homeownership, consider a rent-to-own (or lease-to-own) arrangement. It allows you to rent now and buy later. It can be ideal for renters with poor credit, buying time to rebuild their credit score and locking in a fair price on the property.
While slightly unconventional, this type of rental transaction can be a great option for aspiring homebuyers with poor credit.
- Some homeowners advertising their property as a rent-to-own are willing to work with applicants with lower credit scores.
- It can help you buy time to build your credit score to qualify for a home loan
- You can lock in a decent sale price on the property.
Read more in What to Know About Rent-to-Own, because this type of transaction isn't for everyone.
Photo by Nattakorn Maneerat from Getty Images Pro via Canva.com
How to Raise Your Credit Score
While it will take time, raising your score to broaden your options is the top priority. Here are some steps you can take to increase your credit score.
1. Carry a balance less than your credit limit.
Aim to keep credit card balances under 30% of your limit.
2. Dispute errors on your credit report.
The Federal Trade Commission provides guidance to address inaccuracies and improve your score, even offering sample letters to follow.
3. Pay off debt.
A strategy for debt reduction or complete debt elimination is to start with smaller debts and then focus on larger ones.
4. Pay bills on time.
Setting reminders or automating payments to avoid late fees is an easy way to ensure everything is on time.
Using a rent-to-income ratio calculator while budgeting can help you stay realistic about what you can afford while you work on credit repair. Following the renting house steps and tracking progress over time will help you strengthen your financial position and prepare for future housing opportunities.
A low credit score doesn’t define your ability to rent, but it means that you need to plan strategically. Knowing the answer to the question “What credit score do you need to rent an apartment?” and understanding your rent-to-income ratio can give you confidence when looking for a rental.
When you complete the steps for renting a house, prepare for the background check, and verify your finances with a rent-to-income ratio calculator, you’ll be ready to advocate for yourself and secure your next home with confidence.
By Danielle Keech
back to top