Do Apartment Credit Checks Lower Your Score?

Your next apartment search will likely result in a few credit checks initiated by your landlord. Can these credit checks lower your credit score, though? While they can appear as an inquiry on your credit report, these checks are not as harmful as you may think.

Does Applying For An Apartment Hurt Your Credit?

One question many tenants have is whether or not apartment credit checks are classified as hard or soft inquiries. Hard credit checks are when your credit report is pulled in order to check your credit history for a new line of credit. Soft checks pull the same information, but they have less of an impact on your score because they are not attached to a specific credit application.

The majority of credit card providers, mortgage lenders, and other lending institutions will run a hard credit check. However, since landlords and property managers primarily check for information on your credit history to determine your ability to make on-time payments, these are recorded as soft checks.

This means your credit score is typically left unchanged when you are applying for an apartment, unless you are applying for a new line of credit at the same time.

How Do Landlords Check Credit Scores?

Landlords will check your credit scores directly through one of the three credit bureaus, including Experian, Equifax, and TransUnion. Property management software platforms can also be utilized for these checks.

Can Multiple Credit Checks Affect My Credit Score?

Since apartment checks are considered soft checks, they will not negatively impact your credit score. Your credit score should not be impacted whatsoever, regardless of how long your apartment search takes.

How Long Do Inquiries Stay On Your Credit Report?

Soft credit pulls can be seen in your rental credit check history, but they won’t affect your score at all. They will disappear within 30 days. Hard inquiry checks, on the other hand, can stay on your report for 2 years.

Conclusion

Apartment credit checks will be done by property managers or landlords to determine if an applicant can and will pay their rent in a timely fashion.

As a renter, it’s very important to understand the impact of credit inquiries and how they can affect your overall score. Apartment checks are classified as soft checks, while big financial commitments will go down as hard credit checks.