On the last episode of the WeeklyBagel podcast, you and I contemplated living alone versus getting a roommate. Whatever decision you arrive at, I want you to know it is hard to rent with no credit score. You need a good credit score for an apartment.
What does your credit score mean to renters, my dear listener?
Your credit score reveals whether you are a risk to a rental business or not. This is why I recommend building a good credit history before getting an apartment. In as much as apartments want to fill their empty rooms, they want someone who is able to make rent every month. As you know by now, an apartment is a business set up to generate monthly income for its owner. A bad credit score and credit history make you a high risk.
Speaking of credit, I suggest you read Credit Score Vs Credit Report: What Is the Difference. Otherwise, here are what else I need you to know.
Which Credit Score Do Apartments Use?
Apartments use the Equifax, Experian and TransUnion to pull your credit report. These are American credit bureaus that compile information with respect to your financial obligations. Each time you do things which ruin your credit score, the business entity involved reports to these bureaus who build a file on you. Points are assigned based on the bureau’s rating of your credit history.
Do you understand how it works now?
It is why apartments use these three bureaus. I would say their credit scores are pretty much a reflection of your financial state. It is exactly why apartments use them to pull your credit report.
What Is A Good Credit Score For An Apartment
On this episode, I talked about the credit score for an apartment. The average credit score for an apartment should be at least 650. Usually for young adults moving out of their parents’ house, credit score may not be up to Fair credit range. This is especially, if you have not been working on it.
So, what is the minimum credit score for an apartment?
The minimum credit score for renting an apartment is at least 638. This is because it falls within the Fair credit range. Anyways, you can still get an apartment with a Fair credit range. But, you might be required to make a higher deposit than most applicants.
I explained why on this episode. Now, here is why a bad credit score might not work in your favor.
What Credit Score Will Get You Denied For An Apartment?
A low credit score for rental application will not get you qualified. I talked about how scores below the Fair credit rating will not get you an apartment. It is not a rule, because people trying to rent their homes or apartment rooms to you may not mind.
However, apartment complexes or rental businesses do not like it when people come in with a poor credit score. A poor credit score ranges from 300 to 579. So, anything below 580 puts you on the bottom of the list of applicants.
If your credit is bad, read how to fix your bad credit score. I explained a step by step approach which will get your credit score to a good range within 8 months. I recommend working on this during the same time as when you are saving for an apartment on episode three.
Now, let us get you to a minimum credit score for renting an apartment, before you go over to submit your application. Grab a popcorn, you are about to hear some no nonsense practical advice from a thick accent working class adult!
Is It Smarter To Get Roommates Or Just Live Alone?