Finding an apartment can be stressful, and bad credit might make it seem impossible. But no need to fret. Even if your credit score isn’t perfect, you can still find a great place to live.
You can navigate the rental market successfully with the right strategies, a handful of know-how, and some persistence.
Let’s dive into some practical tips to help you rent with bad credit.
Is it possible to rent an apartment with bad credit?
You might wonder if renting an apartment with bad credit is possible.
The short answer is: Yes, it is. While a low credit score can make it harder for your application to reach the top of the pile, it doesn’t entirely close off your options.
Landlords and property managers usually check credit scores to minimize their financial risk and avoid leasing to someone who might have difficulty paying. However, many understand that credit scores only tell part of the story. Other factors are usually weighed to determine whether to offer you a lease.
What's the lowest credit score you can have to rent an apartment?
There isn’t a universal minimum credit score required to rent an apartment. However, the average credit score for renters in the U.S. is 638.¹ Some landlords and property managers may prefer scores above that, but the exact minimum score depends on the property, landlord, and location.
Scores below this threshold can still secure rentals, but you might need to take additional steps to reassure landlords.
Landlords look at several factors beyond the credit score alone. They may consider the following:
- Your income
- Payment history
- Debt-to-income ratio
- Employment stability
- Rental history
- References
8 tips for renting an apartment with bad credit
If you have not-too-great credit, these tips can help you secure a rental:
1. Talk to your potential landlord
Be upfront about your credit situation. Explain any issues and provide context. Many landlords appreciate honesty and may be more flexible than you think.
Starting up communication also helps the landlord get to know you. Building rapport and trust can boost your odds of landing a place. It can also strengthen the tenant-landlord relationship if you get the rental.
2. Look for rentals that don’t require a credit check
Some properties, especially smaller, privately owned ones, might not require credit checks at all. For example, smaller apartment buildings, shared housing, duplexes, single-family homes, or short-term rentals might not require a credit check.
3. Make a larger upfront payment
If you can, offer several months’ rent in advance or an increased security deposit. This can help landlords feel more comfortable about your finances and increase your chances of getting approved as a tenant.
4. Propose setting up automatic payments
Talk to the landlord or property manager about setting up autopay. This can show your commitment to paying rent on time and ease landlords’ concerns about potential missed payments.
5. Submit documents and references
Provide references and letters of recommendation from previous landlords, employers, or other credible sources who can attest to your reliability and character.
Utility statements and past rental history are documents you can submit to prove your financial responsibility. These show a track record of on-time payments.
6. Find a cosigner or guarantor
A cosigner or guarantor with solid credit can strengthen your rental application. When you have a cosigner or guarantor, you can boost your odds of getting a place by assuring landlords that you can cover your rent.
A guarantor will vouch for you and sign the lease with you. However, they don’t need to live in the place and are only financially responsible for making rent payments if you can’t keep up.
A cosigner, on the other hand, is responsible for splitting the rent from the beginning of the lease. They usually also live with you.
7. Consider getting a roommate
Sharing the financial responsibility with someone with strong credit can increase your chances of securing a rental.
When applying for a place together, you and your roommate will need to complete and turn in an application, provide any required documents such as bank statements and recent paystubs, and be okay with credit and background checks.
8. Offer to move in right away
You might have to pay some overlap with both rents, but offering to move in as soon as possible means the landlord loses less money with a vacant rental. In turn, this can increase your chances of securing the place.
Steps to improve your credit
Boosting your credit score before searching for an apartment can make the process easier. Before you start your apartment hunting, here are some steps you can take:
Check your credit report
Review your credit score report for errors or missing information, and dispute any inaccuracies.
You can order a credit report for free from each of the three credit bureaus – Experian, Equifax, and TransUnion. Accurate information can boost your score.
If you spot an error in your report, you can file a dispute directly to the credit bureau. The bureau usually has 30 days to respond to your inquiry with a decision.²
Pay down debt
Reducing your debt can improve your credit score. For one, it lowers your credit utilization ratio, which is a factor that makes up 30% of your score.³
To pay down debt, try doing the following:
- Try the avalanche debt payoff method. This method involves paying off high-interest debts first, which can help you save on interest. Alternatively, you can try the snowball method, which means paying off the credit card with the lowest balance first and then working your way up. This will boost your emotional well-being and motivate you to keep paying down your debt.
- Stay on top of payments. Make sure all your bills are paid on time. Payment history is a significant factor in your credit score – 35%, to be exact.³
- Limit new credit inquiries. Avoid applying for new credit cards or loans before apartment hunting. That’s because multiple inquiries can lower your score. However, if you’re shopping for a new utility provider, car loan, or mortgage, several inquiries can count as one. This applies as long as you apply within a set period, which is anywhere from 15 to 45 days.⁴ Lenders and creditors will know you’re rate shopping, so they won’t count it against you.
Bad credit doesn't mean a bad rental
Low-credit housing doesn’t mean you have to put up with a rental you’re not going to be happy with. Renting with bad credit can come with its own hurdles, but it’s entirely possible.
By taking steps in the right direction and using our tried-and-true tips, you can land a great apartment despite a not-too-stellar credit score.
Interested in learning how to rebuild your credit? Find out ways to repair your credit.