Getting ready to rent a new apartment is an exciting time for anyone. However, as is the case with most significant financial decisions, your credit scores can play a big role in whether or not you receive approval for the property that you want.
Generally, landlords use your credit scores as evidence that you’re capable of paying the rent on time. So, a credit score that’s above 620 should be enough to get you a decent apartment.
What Do you Need to Rent an Apartment or House?
If it’s your first time trying to rent an apartment, there are certain documents and verifications that you must provide landlords before they agree to let you rent. These documents can include:
- Pay Stubs
- Bank Statements
- Photo ID
- Social Security Number
- Rental History
- Credit Scores
Landlords require these documents because the apartment or house still belongs to them at the end of the day. They’re liable if they end up renting to someone who can’t pay the rent on time or ends up damaging the unit.
That’s why, to help avoid any unpleasant situations, landlords review possible renters’ information, including their credit scores.
When it comes to credit scores ranges, landlords typically look for tenants with a credit score higher than 620.
How Does Renting Affect Your Credit Score?
When you’re looking to rent an apartment, the landlord typically asks to review your credit report. That review is a hard inquiry and will negatively impact your credit scores. However, that doesn’t mean you need to apply to only one apartment at a time.
Generally, the three major credit bureaus treat multiple tenant screening-related activities as a single inquiry.
Ways To Positively Impact Your Credit Score
You can help build and establish credit by making sure your on-time rent payments are reported to major credit bureaus.
By getting a rent reporting service on board, you can positively impact your credit score every time you make a rental payment. It can be incredibly valuable to enhance your overall financial purchasing power.