According to Zillow, When landlords were asked to choose the most important quality in a tenant, the top answer was paying rent on time (43%), followed by taking good care of the home (29%), and having a strong credit history (14%).
Renting a house has become a go-to option for many people in the U.S., whether it’s for the flexibility of moving around, the affordability compared to buying, or simply avoiding the hassle of home maintenance. Your credit score plays a significant role in determining whether you can secure that perfect rental. Knowing the minimum credit score to rent a house can make all the difference, not just in finding a place to call home, but also in the kind of lease terms you might be offered.
What is a “Minimum Credit Score”?
The term “minimum credit score” refers to the lowest credit score a lender, landlord, or other entity will accept when evaluating a person’s creditworthiness for a financial product or service, such as a loan, mortgage, or rental application. This score represents the threshold below which an applicant might be considered too risky.
For example, when renting a house, a landlord might set a minimum credit score, say 650, meaning that applicants with a score below this would likely be denied or require additional assurances, such as a larger security deposit or a co-signer.
What Credit Score is Needed to Rent a House?
When you’re looking to rent a house, your credit score plays a big role in the process. Generally, landlords are looking for a credit score of at least 620 to 650. This range shows that you’re a reliable tenant who can manage monthly payments.
However, if you’re aiming for a more premium rental or if you’re in a competitive market, you might need a score of 700 or higher to stand out. If your score is lower, don’t worry–some landlords might still work with you if you can offer a higher security deposit or have a stable income to show.
In any case, it’s worth checking with the specific property you’re interested in to see what they require. A good credit score can make your rental experience smoother and might even save you some money on deposits.
What Do Landlords Look for in a Potential Tenant?
Most landlords only care about past evictions and judgments, but some landlords might evaluate your credit. They typically look for a few key things:
1. Low Credit Score
Why It’s a Concern: A credit score under 600 often signals that you might have had trouble managing your finances in the past. This could make a landlord worry that you might struggle to pay rent on time.
What You Can Do: If your credit score is low, try to offer a larger security deposit or find a co-signer. This can help reassure the landlord that you’re financially responsible despite your credit score.
2. High Debt-to-Income Ratio
Why It’s a Concern: If a big chunk of your income goes towards paying off debt, landlords might wonder if you’ll have enough left over to cover rent each month.
What You Can Do: Show proof of a stable income or savings that can cover the rent. This helps demonstrate that you’re capable of managing your rent along with other financial responsibilities.
3. History of Late Payments
Why It’s a Concern: If you’ve frequently paid bills late, it might suggest to a landlord that you could do the same with rent.
What You Can Do: Offer to set up automatic payments for your rent, or provide references from previous landlords who can vouch that you paid rent on time.
4. Past Evictions
Why It’s a Concern: Having been evicted in the past is a major red flag because it suggests you didn’t meet your previous rental obligations.
What You Can Do: Be upfront about any evictions, explain what happened, and show how you’ve improved your situation since then. Offering a higher security deposit or getting a co-signer can also help ease a landlord’s concerns.
5. Unstable Employment History
Why It’s a Concern: If you’ve had a lot of job changes or gaps in employment, it might make a landlord worry about your ability to consistently pay rent.
What You Can Do: Provide documentation that shows your current employment is stable, and consider offering to pay a few months’ rent upfront to show your commitment.
6. Incomplete or Inconsistent Information
Why It’s a Concern: If there are gaps or inconsistencies in your rental application, it might make a landlord question your honesty or attention to detail.
What You Can Do: Double-check your application before submitting it, and if there’s something that might raise questions, address it with the landlord proactively.
Even if your credit isn’t perfect, there are still ways to improve your chances, like offering a higher deposit or getting a co-signer. We’ll go through each one below.
How to Rent a House with a Low Credit Score
Renting a house with a low credit score can be challenging, but with the right approach, you can improve your chances. Here are some actionable tips to help you secure a rental:
1. Offer a Bigger Deposit
How to Do It: If your savings allow, offer to pay a larger security deposit upfront. For example, if the typical deposit is one month’s rent, propose paying two or three months’ worth. This extra cushion can make a landlord more comfortable renting to you despite your low credit score, as it reduces their financial risk.
Why It Helps: A larger deposit shows you’re serious and financially prepared, which can compensate for a lower credit score.
2. Get Strong References
How to Do It: Reach out to past landlords, employers, or other professionals who can vouch for your reliability and character. Ask them if they’d be willing to provide a reference and make sure they’re prepared to speak positively about your rental history, work ethic, and responsibility.
Why It Helps: Good references can reassure landlords that you’re a dependable tenant, even if your credit score isn’t perfect. Providing letters of recommendation or having references ready to speak to the landlord can give you an edge.
3. Find a Co-Signer
How to Do It: Ask a family member or close friend with a strong credit score if they would be willing to co-sign your lease. Make sure they understand that by co-signing, they are agreeing to be responsible for the rent if you are unable to pay.
Why It Helps: A co-signer with good credit adds security for the landlord, making them more likely to approve your application despite your low credit score.
4. Pay Rent Upfront
How to Do It: If you have the financial means, offer to pay several months’ rent in advance. Start by offering two or three months upfront, or even the entire lease term if possible.
Why It Helps: Paying upfront can alleviate the landlord’s concerns about your ability to pay rent consistently, showing that you have the funds available and are committed to securing the rental.
5. Show Proof of Income
How to Do It: Gather your recent pay stubs, tax returns, or bank statements to demonstrate your income stability. If you have additional sources of income, such as freelance work or investments, include proof of these as well.
Why It Helps: Demonstrating a stable income, especially if it’s several times the monthly rent, can help reassure landlords that you can afford the rental payments, even if your credit score is lower.
6. Consider Private Landlords
How to Do It: Look for rental properties managed by individual landlords rather than large property management companies. You can find these through local classifieds, community boards, or word-of-mouth.
Why It Helps: Private landlords may have more flexibility in their criteria and might be more willing to work with you if you explain your situation and offer solutions, like a larger deposit or upfront rent.
7. Be Honest About Your Situation
How to Do It: When you meet with the landlord, be upfront about why your credit score is low. If the drop was due to a specific event like medical bills or a temporary financial issue, explain this and let them know what steps you’re taking to improve your credit.
Why It Helps: Transparency can build trust. Landlords are more likely to work with someone who is honest about their situation and proactive in resolving their financial issues.
8. Look for Rentals That Don’t Require Credit Checks
How to Do It: Search for properties that advertise “no credit check” or “flexible credit requirements.” These might be more common with smaller landlords or in certain markets.
Why It Helps: If your credit score is a significant barrier, finding a rental that doesn’t require a credit check can bypass that obstacle entirely.
By taking these steps, you can increase your chances of securing a rental, even if your credit score isn’t where you’d like it to be. Remember, persistence and preparation can go a long way in convincing a landlord to give you a chance.
Boost Your Credit Score with Cushion’s Credit Builder
If your credit score is holding you back from renting the home you want, Cushion’s Credit Builder could be exactly what you need. This tool helps you improve your credit score by reporting on-time payments, making it easier to build a strong credit history over time.
Whether you’re trying to raise your score to meet the minimum requirements or just want to make your rental application more appealing, Cushion’s Credit Builder is a smart step forward. Start building a better credit score today!
Lowest Credit Score to Rent
When it comes to renting a house with a low credit score, it really depends on the landlord’s approach. Some landlords are more flexible than others. For example, someone shared on Reddit that they got approved for a rental even though their credit score had dropped to 569 after a collections issue.
What really helped them was their strong combined yearly income of about $135,000, which was more than three times the monthly rent of $1,625. This showed the landlord that they could comfortably afford the rent despite the lower credit score.
Summary
When you’re looking to rent a house, landlords typically expect a credit score of around 620 to 650, but some may be more flexible, especially if you can show strong income or provide good references. In more competitive markets or for higher-end rentals, you might need a score of 700 or more to stand out.
If your score is lower, don’t worry–there are ways to boost your chances, like offering a bigger security deposit, paying rent upfront, or getting a co-signer. Understanding what landlords are concerned about, like past evictions or late payments, and addressing these issues directly can also help you secure a rental, even with a less-than-perfect credit history.
