Quick Answer
It is possible to rent an apartment with bad credit. While some landlords consider credit scores during the application process, many also look at factors like your income, rental history and financial stability. Taking steps to strengthen your rental application can improve your chances of getting approved, even with less-than-perfect credit.
Renting an apartment with bad credit may require a little extra preparation, but it’s far from impossible. The good news is having a bad credit score doesn’t necessarily mean you’re out of luck. There is a path forward when it comes to finding rental properties that look beyond your credit.
In this blog post, we’ll explore eight ways you can help boost your chances of renting an apartment with bad credit.
Can you rent an apartment with bad credit?
Yes, you can still find opportunities to rent an apartment with a less-than-perfect credit score. By strengthening the rest of your application and following a few simple steps, you can improve your chances of finding a place that fits your needs.
Depending on your situation, here are just a few of the ways you can help boost your creditworthiness.
| If you have… | You can improve your chances by… |
| Low credit score | Showing proof of income |
| Past collections | Explaining negative items |
| No rental history | Using a co-signer |
| Limited credit history | Offering a larger security deposit |
1. Offer more money up front.
If you have a low credit score, consider offering a larger security deposit up front. Security deposit laws vary by state, but typically, if you don’t damage the unit or break any rules outlined in your agreement, your security deposit is usually returned when your lease is up.
You might also want to offer a month or two of advance rent — to show your future landlord or property manager that you are serious about the property and have the ability to stay on top of payments.
2. Get a cosigner or guarantor.
A cosigner is someone who shares equal, immediate financial responsibility for your lease and rent payments from day one if you are unable to meet them. Enlisting the help of a cosigner with a strong credit history can significantly improve your chances of being approved for an apartment.
A guarantor, on the other hand, serves as your plan B safety net and would be held liable in case you default on your payments.
Close friends or family members are typically asked to fulfill these roles. But be careful before you ask someone to share your financial responsibilities. Your negative actions, such as late payments, can hurt their credit score and strain your relationship.
3. Get a roommate.
Cosigning a lease with a roommate can make renting more affordable while appealing to potential landlords. A roommate with a better credit score and financial history can help increase your chances of approval. Plus, splitting your rent in half each month means you may have an easier time repaying that amount.
4. Provide additional documents.
To help prove your income and financial stability, supplement your rental application with additional documents that demonstrate good payment history, such as:
- Bank statements (with sensitive information blacked out)
- Pay stubs
- Utility payments
- Proof of income
- Tax returns
- Letter of recommendation from a previous landlord or employer
5. Explain negative items on your credit report.
This can be a really useful way to help a landlord or background check company understand the bigger picture — especially if you have bad credit that’s due to medical debt, a prior job loss, a divorce or an unexpected emergency.
Writing a brief personal statement (100 words or less) disclosing the reason for your score, in addition to how you are moving forward to fix it, can provide the extra context that a landlord or key decision maker is looking for.
6. Find a private landlord.
You may have better luck renting from a private, individual landlord. Compared to large property management companies, an independent landlord or rental owner may have more flexibility. Private rental owners typically select renters themselves instead of relying on strict credit score requirements. Their idea of what makes a good tenant may be more flexible than the requirements of a management company.
7. Provide strong references.
Personal and landlord references from people who can speak to your reliability, payment history, neighborliness and responsibility can go a long way to reassure a hesitant property manager that you’ll be a reliable tenant, especially if your credit history has some negative marks.
8. Strengthen all the other parts of your application.
Renting isn’t solely about credit. There are other factors in play, too. Take a minute to look past your credit score and think about characteristics that make a good tenant.
Submitting a complete application with organized paperwork makes a positive first impression. You might want to highlight other factors for them to consider, like if you have a savings account, stable employment and stay communicative and transparent throughout the application process.
What credit score do you need to rent an apartment?
Typically, landlords look for a score in the fair range and above. Scoring models vary slightly between the different credit bureaus. According to FICO, a poor credit score is under 580, a fair credit score is 580 – 669, a good credit score is 670 – 739, a very good credit score is 740 – 799 and an exceptional score is 800 and above.
What do landlords look for in your credit report?
In addition to a fair credit score rating or higher, here are some things a landlord may look for when it comes to considering you as a tenant:
- A clean background check.
- A positive rental history with no previous evictions.
- A gross monthly income (income before taxes) of at least three times the monthly rent.
How do I check my credit score?
Before you start your apartment hunt, run a credit check on yourself to understand exactly what a prospective landlord might see.
You can get a free copy of your credit report from the three major credit bureaus (Experian, Equifax and TransUnion) once a year via AnnualCreditReport.com. Review the report for any errors and take steps to correct them.
Your FICO score can be accessed for free online through some bank account providers. Experian also lets you check your FICO score for free.
Beyond the score itself, delinquencies on your credit report could pose a red flag to prospective landlords. These include:
- Evictions
- Bankruptcies
- Foreclosures
- Late payments
- Credit card debt
- Loan defaults
- Auto repossessions
Why is your credit score important when looking for an apartment?
Your credit score serves as a reflection of your creditworthiness and ability to meet your obligations. Landlords use this score as an indicator of your likelihood to pay rent on time and fulfill other lease terms. A higher credit score can make you seem like a responsible tenant to potential landlords.
Are no-credit-check apartments a good idea?
A no-credit-check apartment might not be a good idea because it typically comes with additional strings and higher costs.
A no-credit-check apartment often comes in the form of a private landlord agreement or a sublease from the legal tenant. While there are fewer credit requirements, rental properties that don’t require credit checks could potentially signal a scam. At the very least, these properties can cost you a lot more in the long term with higher deposits, monthly rent and application fees.
If a listing sounds too good to be true, take extra time to verify that it’s legitimate before sending money or personal information.
How to build your credit for next time.
While it’s not a fast answer, actively working to build your credit is a smart long-term strategy. Timely payments on your existing debts and responsible use of credit can gradually raise your credit score over time.
Make on-time payments. Consistently paying utility, auto and credit card payments on time demonstrates reliability and contributes positively to your credit history.
Reduce credit card balances. High credit card balances relative to your credit limits can negatively impact your credit score. Paying down your balances can improve your overall credit utilization ratio.
Keep credit utilization low. In addition to paying off your credit card balances on time, you can try to get a credit limit increase or open a new credit card without using it to help lower your credit utilization ratio.
Final Thoughts
Renting an apartment with bad credit may require a little extra preparation, but it’s far from impossible. By strengthening the rest of your application, being upfront about your financial situation and exploring different rental options, you can improve your chances of finding a place that fits your needs.
DISCLAIMER: This content is for informational purposes only and should not be considered financial, investment, tax or legal advice.
