We all know exactly how important a good credit score having is in the USA. Its number determines the possibility of receiving credit cards, loans, or mortgages. Moreover, most renters will also check your FICO score before renting you an apartment or a house. Hence, we seek the ultimate solution to a minimum credit score to rent in the US.
Minimum Credit Score – All You Need to Know
Many US citizens think that having a bad credit report will disqualify them from renting an apartment. However, there is no need to panic! There is no definite bottom credit score that renters require from you to gain access to an apartment.
Regardless of that, a good credit score is still a very important factor.
So why does it matter so much to control your credit score when renting? Your credit report reveals a history of your debt repayment—or lack thereof. It helps a landlord determine your propensity to pay rent on schedule.
Your chances of having your rental application approved by the property manager decrease when your credit score drops. This three-digit number, therefore, has the potential to determine whether you get your dream property. Which comes up a crucial point: what is the lowest credit score gives you the best chances to fulfil your dream of renting an apartment?
Article that may interest you: Marriage and Credit Score: the Facts You Need to Know
What Is a Good Credit Score?
The range of credit score is 300 to 850. If you have not yet reached the magic number 850, there is no need to worry. A credit score of 750 or more is typically regarded as excellent. From there, credit ratings are categorized as good (700–749), fair (650–699), or poor (below 600). (Lower than 650).
There are two key elements that will determine the required minimum credit score to rent an apartment. The local rental market’s competitiveness is the first. Your credit score will need to be greater as market competition increases. The kind of apartment you wish to rent also matters; luxury apartments require better credit than basic or budget apartments. Each landlord or property management firm will ultimately have its own credit score cutoffs.
According to recent surveys, the average lower credit score for American renters is 638.
On the other hand, landlords from certain cities can require a higher credit score. Luckily, the rental market is open enough for competition. Hence, renters can compete among themselves by lowering their credit expectations.
Why Is a Good Score Important for Renters?
Only when renters are residing in a property do landlords profit. The majority of landlords rely on rental income to pay their mortgage, insurance, taxes, upkeep, management fees, and other expenses. A non-paying renter jeopardizes the landlord’s interests.
Therefore, their best strategy to reduce that risk is to check the credit score of potential renters. People with strong credit have a history of timely bill payments. Additionally, those with good or excellent credit are thought to be less likely to skip a rent payment in the future, even though they may have done so in the past.
In conclusion, it is best for you to keep an eye on your credit reports. Keep your credit score high in order to enhance your chances of getting a nice rental.