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US Rental – Can Your Credit Score Affect Renting?
September 29, 2022

Renting a home is challenging for individuals who unfortunately do not have a good credit score on their credit reports. Especially, when most landlords demand a minimum credit score from renters in order to rent a home. However, the majority of people barely ever check their own credit reports and hence are unable to improve their renting possibilities. In the following article, we are zooming in on US rental and how it correlates with credit.

Does All US Rental Depend On a Good Credit Score?

Although it might not be a barrier to renting a home, landlords could take your credit score into account when choosing whether to approve your rental application. What grounds a landlord can use to deny a renter’s application is governed by both state and federal housing regulations. However, a landlord’s choice may be influenced by an applicant’s credit history as well as their unwillingness to submit a credit check.

According to the recent research, more than a third of the nation rents houses and apartments. If you belong to this group, it is critical that you comprehend how your credit history may influence your ability to use US rental services.

What Other Factors Play an Important Role?

A landlord will probably not focus on a potential tenant’s credit score while doing a credit check on them. The credit score may not even be important to some landlords. They may place more emphasis on the prospective tenant’s total credit history and payment history, particularly if they have a history of making payments on time.

By looking at how you have handled your debt in the past, a landlord can determine if you will be able to pay your rent on time each month. Clean credit history might influence the landlord’s decision to accept you. On the other hand, poor credit history can prompt the landlord to want more guarantees, such as a larger security deposit.

Lenders most commonly use the FICO® Score as a crucial factor in assessing the score a tenant has. Its weight is 35% while the other factors include the debt you are handling (30%), your credit history length (15%), any new credit (10%), as well as the kinds of credit accounts you possess in your report (10%).

What Credit Score Is Good For Renting?

When it comes to US rental and other credit-related transactions, there is a wide variance in credit scores. The lowest value is 300, while the maximum value is 850. This indicates that there are several digits in between that must add up to the minimum credit score needed to rent an apartment. However, the credit bureaus do assign credit ratings to ranges.

Check if your FICO® score is therefore between the following values:

The higher your credit score is, the more likely a landlord is to accept you as their tenant. Therefore, you should watch out for any inconsistencies in your credit report. Take care of your debt-to-income ratio, foreclosures, credit cards, mortgages, and car loans. All of these factors might be examined when applying for any US rental. Hence, it is crucial to keep an eye out for your credit score.

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