If you’re searching for an apartment in Chicago or applying for a rental in Austin, you’ll likely need to pass an apartment credit check as part of the application process. In this Apartment Guide, we’ll explain what an apartment credit check is, what landlords look for, and how to improve your chances of passing one.
What is an apartment credit check?
An apartment credit check is a screening process landlords use to evaluate a prospective tenant’s financial reliability. By reviewing an applicant’s credit history and credit score, landlords can assess the likelihood of on-time rent payments and overall financial responsibility. This check helps landlords minimize risks when selecting tenants.
What’s included in an apartment credit check?
When a landlord conducts a credit check, they typically review key financial indicators to assess a tenant’s financial responsibility. What do landlords look for in an apartment credit check? They focus on factors that indicate whether a renter is likely to pay rent on time and manage financial obligations effectively. These include:
1. Credit score
A credit score is a numerical rating that reflects your creditworthiness. Landlords focus on this score—often looking for a FICO Score above 670—as a general indicator of financial responsibility. However, this number can vary depending on where you live, your income, and how competitive the rental market is.
2. Payment history
Most landlords want to know if you consistently pay your bills on time. A credit report will show your track record for rent payments, loans, and credit card bills. If a previous landlord has reported unpaid rent, this could be a red flag.
3. Outstanding debts and collections
Landlords will check for any unpaid balances, including credit card debt, personal loans, or accounts that have gone into collections. If you owe significant amounts or have a history of defaulting on payments, it may raise concerns.
4. Employment history and income
To ensure you can afford the rent, landlords may review your job stability and income. If you’ve been with the same employer for many years, it can signal financial stability. Some landlords set income-to-rent ratios, meaning they want to see that you don’t spend more than half of your gross income on rent and bills.
5. Bankruptcy filings
Bankruptcies can remain on your credit report for up to 10 years. Landlords may check if any outstanding debts from a bankruptcy are still owed, which could affect your ability to rent an apartment.
6. Public records and legal issues
Some landlords use tenant screening services to check for past evictions, tax liens, civil judgments, or legal history. While landlords don’t expect perfect credit, significant financial missteps—such as a recent car repossession or long periods of missed payments—could affect your approval.
How do landlords use credit checks?
Landlords use credit checks as part of the tenant screening process to identify renters who are financially stable and responsible. A strong credit history with on-time payments and low debt increases your chances of getting approved for an apartment. Conversely, a history of late payments, high debt, or evictions may raise red flags for landlords.
What information do landlords need for a credit check?
To run a credit check, landlords typically require:
- Full legal name
- Social Security number
- Date of birth
- Current and former addresses from the last two years
- Current and past employment history
How to pass your apartment credit check
If you’re worried about passing a rental credit check, here are a few ways to improve your chances:
- Review your credit score and report – Check for any errors and dispute inaccuracies.
- Improve your credit score – Pay down outstanding debts and make on-time payments.
- Provide strong proof of income – Show pay stubs, tax returns, or bank statements to demonstrate financial stability.
- Offer advanced payments – Paying a larger security deposit or several months’ rent upfront can ease landlord concerns.
- Get a co-signer – A co-signer with good credit can strengthen your application.
- Offer a good explanation – If you have past credit issues, provide context and show how you’ve improved financially.
- Live with a roommate – Applying with a financially stable roommate can improve your approval odds.
How to find an apartment with bad credit
Having bad credit doesn’t mean you can’t rent an apartment—it just means you may need to take extra steps to reassure potential landlords. Many landlords require tenants with little or no credit history to find a co-signer—someone with good credit who agrees to cover the rent if you can’t.
If a co-signer isn’t an option, here are a few other ways to improve your chances:
- Show proof of steady income. A reliable job with sufficient income can demonstrate your ability to pay rent on time.
- Offer a larger security deposit. Paying extra upfront—such as a higher deposit or a few months’ rent in advance—can ease a landlord’s concerns.
- Provide rental history and references. Past rent payment records, utility bills, or letters from previous landlords can show that you’ve been a responsible tenant.
- Explain your credit situation. If your low credit score was due to temporary circumstances, like a job loss, some landlords may be willing to overlook it.
Taking these steps can help you secure an apartment, even with less-than-perfect credit.
Rental credit checks FAQ
1. Where do landlords get credit reports?
Landlords obtain credit reports from tenant screening companies, landlord associations, or directly from major credit bureaus like Equifax, Experian, and TransUnion. Since each bureau may report slightly different information, reviewing all three provides a more complete financial picture. Knowing what landlords look for in a credit check can help you strengthen your application and improve your chances of approval.
2. Does a rental credit check hurt my credit score?
A rental credit check may result in a hard inquiry if the landlord pulls a full credit report, which can temporarily lower your score. However, some landlords perform a soft inquiry, which does not impact your credit. If you’re applying for multiple apartments, try to limit hard inquiries to avoid any significant effect on your score.
3. Can I rent an apartment with bad credit?
Yes, renting with bad credit is possible, but you may need to provide extra documentation or alternative guarantees. Some landlords accept tenants with lower credit if they offer a higher security deposit, a co-signer, proof of steady income, or prepay rent. Being upfront about your credit situation and demonstrating financial stability can improve your chances.
4. How can I check my own credit before applying for an apartment?
You can check your credit report for free at AnnualCreditReport.com, which provides reports from Equifax, Experian, and TransUnion. Reviewing your credit beforehand allows you to identify and fix any errors, improve your credit standing, and be better prepared for the rental application process.
5. What happens if I fail a credit check for an apartment?
If you fail a credit check, the landlord may deny your application or request additional guarantees. Options to improve your chances include providing a co-signer, paying a higher security deposit, offering proof of strong income, or explaining any past financial issues. Some landlords may still approve tenants with weaker credit if they show financial responsibility in other ways.
