Do All Apartments Do Credit Checks?

The majority landlords and leasing agencies prefer a possible tenant to have a minimum credit score of 650 to rent an apartment. However, this number can vary based on location. While not all apartments do require a credit check, a large majority of professional property management companies will run a check prior to approving an application.

What Is A Credit Check For An Apartment?

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.

A credit check usually involves looking at a prospective renter’s credit score, loan and credit card payment history, any outstanding debts or collections, possible bankruptcies, and any other applicable public records. Landlords ultimately use this information to determine whether or not you will be trusted to consistently pay your rent on time and in full. A good credit history can only increase your chances of getting approved as a renter.

Does Every Apartment Do Credit Checks?

No, not every apartment will require a credit check. However, the majority of property management companies will run a credit check.

Private landlords or smaller, independent owners may simply focus on verifying income, rental history, and references instead of checking credit.

How To Pass A Credit Check

Here are some tips below to help renters understand the credit check process and how to ultimately get approved for an apartment.

Know Your Credit Score Ahead Of Time

Check your credit score prior to applying for an apartment. You may want to address any issues found within your credit report beforehand.

Pay All Bills On Time

A good credit score is commonly the result of timely payments over a long period of time. One helpful way to ensure this is the case is to set up automatic payments for your bills.

Explain Any Negative Items

Be prepared to explain any negative items on your credit report to your potential landlord. Most property management companies will be willing to work with someone who is honest and can show they’ve taken steps to improve their financial situation.

Consider Adding a Co-Signer

Adding a co-signer with good credit can certainly improve your odds of getting approved for an apartment.

What Credit Score Do You Need To Rent An Apartment?

As mentioned, a minimum credit score of 650 can greatly increase your chances of approval. Higher scores will be needed in the most competitive rental markets. Landlords and leasing agencies will run credit checks to get a better sense of the renter’s potential tendencies, especially when it comes to paying rent on time.

Each landlord and property management company has the ability to put their own credit check criteria in place. It goes without saying, though, the higher the credit score, the more likely you are to be approved.

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.

Why Credit Scores Matter When Renting An Apartment

Credit scores can undoubtedly impact the apartment rental approval process. Landlords love higher scores because it likely means the prospective renter is less of a financial risk. The on-time credit payment history makes up a big portion of your credit score.

Oftentimes, a credit check is just the beginning of the screening process for landlords. They may also obtain your credit report, looking for any potential debts or past bankruptcies.

Apartment Credit Check FAQ’s

Here are a few of the most commonly asked questions regarding credit checks and apartment rentals.

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.

How Can I Rent An Apartment With Poor Credit Or No Credit?

Here are a few tips to help you rent an apartment with either bad credit or no credit at all:

• Get a cosigner.
• Get a roommate.
• Provide multiple references.
• Build your credit up.
• Pay a larger security deposit.

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.