Most of the landlords now require a credit score when they look for new tenants. The landlord wants to see how well the renter can pay their bills every month. There are also some individuals who sublet homes or apartments do not require credit score. But, have a smart score can help the renter to get an apartment easily.
Credit score can range from 300 to 850 as there are many landlords who have their own principles. But, 850 can be considered the highest credit score a tenant can have. With a score around 700, a person can always be approved to rent an apartment. Complexes usually require at least 685 to 700. Credit score below 620 may face tough time getting approved to rent an apartment.
FICO is the mostly commonly used credit score used by lenders. Components of the Fair Isaacs Credit Score (FICO) are:
- 35% Payment History
- 30% Amounts Owed
- 15% Length of Credit History
- 10% Types of Credit Used
- 10% New Credit
A credit score of 620 or higher can play a vital role in getting approved to rent an apartment. But, with the references from the past landlords or employers and a clean history of paid rents on time can help to get an apartment without having such scores. Rent to income ratio being 25 percent or higher can help to get approved. But, it is difficult to get approved if the rent is 40 percent or more than the income.
A person having low credit score does not mean that they cannot get the apartment. They can still convince the apartment manager by following some steps. A co-signer with a good credit is needed to convince the apartment manager. But the co-signer has to pay the rent if the tenant is failed to pay the rent.
If the credit score is 700 or higher, one can easily get an apartment. But, with a low score it is much difficult to get an apartment. The tenants having low scores must have a large amount of money to deposit. And they can also get help from their past landlords to convince the new one.