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Updated 2026
Credit matters when house hunting, whether you’re renting or buying. A credit score is one tool property managers and landlords use to gauge a prospective buyer’s or renter’s financial management; specifically, their likelihood of paying rent or a mortgage on time each month
While a credit score doesn’t always show the whole story, it’s effective at highlighting the negatives. However, it doesn’t explain the full reason behind a low score. For example, many people believe it’s best to pay cash for everything, but this can leave little or no credit history.
For service members planning a PCS and concerned about renting with a bad credit score, this guide will help explain how to prepare to apply for a home.
How Does Credit Affect Renting a House?
Credit can work both for and against service members when applying for military rentals. Landlords will be drawn to applicants with above average credit scores because it suggests they’re financially responsible and likely to pay rent on time.
On the other hand, for lower scores, landlords will need to take the time to learn why. Perhaps the potential tenant is renting for the first time and their credit history is lacking, or maybe they’re returning to the workforce after a divorce. A low score often has more nuance than simply not making payments on time.
What's considered a bad credit score for renting?
Landlords typically want a minimum score of 620, although it isn't the only factor they consider. Renting a property includes a spotlight on your credit and background check, verifiable income, and references.
Can I Rent a House with Bad Credit?
Yes, tenants 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 an applicant’s history. Even with a low credit score, steady employment, a positive rental track record, and strong references can help strengthen your application.
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.”
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How to Raise Your Credit Score
Several strategies can improve a rental applicant's chances of approval. Raising a credit score should be a top priority, though it takes time. The following steps can help increase a credit score and make an applicant more attractive to landlords.
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 popular strategy for reducing or eliminating debt is to start with smaller debts, then focus on larger ones.
4. Pay bills on time.
Setting reminders or automating payments helps you avoid late fees.
How Much Rent Can You Afford?
Landlords often use a rent-to-income ratio calculator to confirm that an applicant’s income supports the rent amount. The standard rent-to-income ratio is around 30%, meaning rent shouldn’t exceed 30% of a tenant’s gross monthly income. If the ratio falls in that range or under it, it can strengthen the application even with a lower credit score.
Here’s an example of the 30% rule from How Much Rent Can I Afford?:
“A $2,800 before-tax monthly income allows for an $840 rent payment (30% of $2,800). A percentage calculator is a quick tool to plug in any amount of monthly total income while deducting the percentage paid for rent: normally 20%, 30%, or 40%.”
Understanding the rent-to-income ratio and showing proof of stability helps applicants stand out. It also helps renters have a realistic idea of what they can afford while working on credit repair. Tracking progress over time will help improve an applicant’s financial position and prepare for future housing opportunities.
What Do Landlords Look for Besides Credit Scores?
Besides personal information, like a Social Security number to run a background and credit check, landlords want to see consistent income and work history, as well as supporting information that addresses perceived deficiencies, like documented credit history improvement over time. Some will also ask for personal references or a contact to previous rental property managers.
Besides credit scores, landlords also look for other trustworthy qualities, like transparency.
“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
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5 Steps for Renting A House
After learning how credit scores work and how to calculate a rent budget, service members can begin looking for houses to rent that fit their family’s needs.
- Prepare a budget that considers the total household income, including BAH and a spouse’s salary. Subtract monthly payments like rent, student loans, credit card payments, and utilities. It’s important to save for the following: security deposit, first month’s rent, and last month’s rent.
- Search for rental homes on MilitaryByOwner, filtering for top priorities, which could include location, budget, home amenities, and whether you need a pet-friendly property. Service members can search by the base they’ll be PCSing to, and results will show nearby off-base properties.
- Consider working with a real estate agent in hard-to-rent areas.
- Visit several homes that fit your criteria to understand the inventory and adjust expectations as needed.
- Follow the exact directions provided by the landlord or property manager for applying to rent the home. There are typically application processing fees for each address, including credit and background checks.
When applying, have access to income statements like an LES and monthly bank statements. Any previous landlord recommendations will also help bolster the application.
Renting an Apartment
Renting an apartment can be someone’s first step to living on their own, and luckily it’s usually easier to qualify for an apartment than to rent a single-family home. The application is similar to renting a house, and it asks for personal identifying information, previous addresses, and employment history.
Credit score is still evaluated, but it's often less stringent than requirements for renting a house. A credit score under 620 will trigger an exploration of an applicant’s income and ability to pay rent on time, but it's still possible to rent an apartment with supporting documents that suggest they’re a reliable tenant. Options like offering a larger security deposit, showing proof of stable income, or using a cosigner can help reassure landlords.
How long do apartment applications take?
The turnaround time can be as quick as a day or two, or it can take more than a week. The process will go more smoothly if the applicant fills out the application quickly and accurately the first time and sends the requested supporting documents. Follow up with the property manager in a few days to keep the process timely.
Learn Everything You Need to Know About Renting Your First Apartment.
Strengthen Your Rental Application
Whether renting for the first time or facing a low credit score, applicants have several ways to strengthen a rental application and make it more appealing to landlords
How can I improve my chances of getting approved for a rental?
First, know that if you’re an active-duty service member, this is often a green flag for landlords. They understand that the service member receives a consistent salary. Landlords recognize that service members need to uphold good financial status to stay in good standing with their command, offering a strong basis for the application. This information is especially helpful for military renters with little or no credit history.
The best thing to do is to fill out the application completely and truthfully so that the property manager doesn’t have to hunt for details.
Renter and Pet Resumes
Prospective tenants can go beyond the application and write a single-page, easy-to-read renter’s resume, including rental history, employment background, and contact details. Add snippets of references and their contact information.
Renting with a pet can be challenging, especially if it’s a banned breed, so the rental application might benefit from a pet resume to help persuade the landlord.
What to Do if a Rental Application is Denied
Hopefully, an error in the application caused the denial. Politely ask to see the reason for the denial and confirm that the information is correct. If there’s a simple fix, ask to resubmit.
If the reason is something else, reassure the landlord with a few supportive measures, like offering a larger security deposit or providing a cosigner. Also, consider other options, like searching for an establishment that doesn’t run credit checks, or consider living on a military base.
Frequently Asked Questions (FAQs)
Can I rent a house with bad credit?
Renters likely need at least 620, if not 640, but you can rent with a lower credit score. If you’re under 620, prepare to boost your application with a cosigner or a larger security deposit. Ask the screener for more options.
What do landlords look for when you apply for a rental?
Landlords look for a fully completed application, including personal details. The application usually includes income and credit history requests and references. They’ll use the information to run a background and credit check.
What should military members have ready when applying for a rental?
Chances are, service members already have their Social Security number memorized, but if you have family living with you, you’ll need their numbers too, especially those over 18. You’ll also need a few months’ worth of LES and other income-verifying documents from your spouse, if applicable. If you have a pet, a pet resume is highly recommended. Don’t forget about the money: application fees, security deposit, first and last month’s rent, and possible pet rent.
Your Credit Score and Military Rentals
A low credit score doesn't disqualify applicants from military rentals, but it does call for strategic planning. Understanding financial details, like monthly income and rent-to-income ratio, builds confidence and helps narrow the search to realistic options.
When credit is a hurdle, widening the search to include on-base military housing, or offering a larger security deposit or higher monthly rent, can improve the odds of approval.
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