Can a Bad Credit Score Prevent Me From Renting an Apartment?

Consumers sometimes assume that if they do not use credit, they do not need to worry about their credit rating, but a credit rating can affect whether you get an apartment. Fortunately, you probably do not need anything other than average credit to rent an apartment. You probably can rent one apartment with bad credit, but you have far fewer options than someone with good credit.

Identification

Bad credit can prevent you from renting an apartment, because landlords often perform a credit check on rental applicants. Seriously negative items, such as bankruptcy and civil judgments, send red flags to the landlord that you may pay your rent late or default on your contract. Most creditors and landlords consider a FICO score of 620 the bare minimum for "good credit," but a higher score increases the chances of approval for an apartment.

Consumer Report

Similar to a credit report is a consumer report. A credit report usually does not contain a rental history, so landlords often purchase a consumer rental history from a separate agency. Thus, you need to have never broken a lease or have other negative items on a rental-history report, like frequent late payments, to rent an apartment.

Building Credit

Run a personal credit check through Annual Credit Report -- a website set up by the national credit bureaus to give consumers one free credit report annually. Scan your reports from all three major credit bureaus for negative items like late payments, collection accounts and civil judgments. A credit report does not contain a credit score, but you probably can estimate your credit score. Some websites, including Fair Isaac Corporation the maker of the FICO scoring system, offer a free FICO score estimator.

Tip

You can rent an apartment with poor credit, but it may take you longer to find a landlord that does not perform a credit check than it would if you have at least average credit. You may need to make concessions with a landlord to rent a dwelling. For example, you can offer to pay for the entire lease upfront or offer a larger security deposit than the landlord expects. The landlord may require someone to guarantee or co-sign your lease.