{"id":7549,"date":"2018-01-17T11:40:36","date_gmt":"2018-01-17T16:40:36","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?post_type=qa&p=7549"},"modified":"2023-07-24T13:43:38","modified_gmt":"2023-07-24T17:43:38","slug":"can-i-rent-an-apartment-with-a-bad-credit-score","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/can-i-rent-an-apartment-with-a-bad-credit-score\/","title":{"rendered":"Can I rent an apartment with a bad credit score?"},"content":{"rendered":"
Do you have a credit score lower than 650? Have you ever gotten denied for rental applications? Renting can be incredibly challenging when you have a bad credit score. From a landlord\u2019s perspective, a bad credit score usually means late payments, or worse, financial losses. Landlords, therefore, may be reluctant to rent to someone who has a low credit score, or they may require more security deposits. However, just because you have a bad credit score, it does not mean that you will not be able to rent. In this post, we will go through everything you should know when it comes to renting with a bad credit score.<\/span><\/p>\n <\/p>\n In case you are unfamiliar, a credit score is a statistical three-digit number that predicts how likely a consumer will repay his or her debts. Landlords utilize credit scores to see if renters will be able to pay rent on time. Credit scores range from 300 to 850, and a credit score of 700 or above is generally considered good. With proof of income, a valid photo ID, and a good credit score, a renter should be able to apply for an apartment without difficulty.<\/span><\/p>\n Most landlords look for credit scores above 700, or at the very least above 650. If your credit score is below 700, you might find renting more difficult. That being said, credit score requirements vary depending on the class of the residential building, <\/span>neighborhood demographics, and landlord\u2019s discretion. A landlord in the Financial District<\/a> might establish a 720 credit requirement for his luxury condo, as rental prices are in general higher in the neighborhood, and it is full of renters who generate a significant amount of income with excellent credit scores, making renting more competitive. <\/span><\/p>\n On the contrary, a landlord in Jamaica<\/a> might be less strict, as the monthly rent is lower, and there might not be many qualified renters if he or she sets a higher-than-usual credit score requirement. Therefore, before you start checking out apartments, the most important thing is to identify the right neighborhoods by looking at rent level and rental supply. Many rental sites, like RentHop<\/a>, provide quarterly rent reports<\/a> —<\/span>\u00a0these definitely come in handy! <\/span><\/p>\n Once you have identified the neighborhoods, you can then shift your focus onto apartments. A bad credit score might hurt your chances of getting approved. However, there are still ways to get an apartment, such as:<\/span><\/p>\n Institutional landlords, such as Related in New York and Veritas Investment in San Francisco, tend to have strict application processes, whereas independent landlords are in general more adaptable when approving renters. They care about whether tenants will cause damage to their properties, and whether they are trustworthy. Remember, your credit score is not the only thing — your background matters, too. Therefore, if you have a bad credit score but have no red flags in your background check report, chances are that you will still be able to find an apartment!<\/p>\n People looking to sublet<\/a> their apartments are usually more flexible when it comes to credit scores, so long as the landlord does not require the sub-tenant to go through credit and background check. People looking for a roommate<\/a> might also be open to sharing an apartment with someone without checking his\/her credit score, as long as that person has enough cash to pay rent.<\/p>\n Editor’s Note: New York City<\/a> renters cannot use this strategy after 2019 legislation that prohibits the landlord from accepting more than two month’s of rent at the start of a lease.<\/em><\/p>\n Remember, cash is king. If you have a bad credit score but have extra cash, you can always offer to pay more security deposit<\/a>. Generally, a security deposit is one to two months\u2019 rent, and it protects the landlord if a tenant causes damage to the rental property or fails to pay rent. By offering to put down more security deposit, you lower the risks, making it easier for the landlord to approve you.<\/p>\nWhat is a Credit Score?<\/h2>\n
What is a Bad Credit Score?<\/h3>\n
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Tips for Renting With a Bad Credit Score<\/h2>\n
1. Focus on Properties Owned or Managed by Independent Landlords and Property Managers<\/h3>\n
2. Look for Sublet or Roommate Arrangements<\/h3>\n
3. Offer to Pay More Security Deposit<\/h3>\n
4. Find a Co-signer or a Guarantor<\/h3>\n