It’s easier to rent a home when you know how to pass a rental credit check. This guide breaks it all down, what landlords check, how to boost your profile, and how to stay ahead in the process!
What Is a Rental Credit Check? Why It Matters for Landlords and Tenants
A rental credit check is a key part of the tenant screening process. Landlords use it to get a quick picture of how someone handles money, particularly when it comes to paying bills on time. It helps them decide whether a renter is likely to pay rent reliably.
For tenants, this check is a chance to make a strong first impression. A solid credit history shows you’re responsible, while credit issues might raise red flags. But even with a bad credit score when renting a house, there are ways to build trust and still get approved.
What is Included in a Rental Credit Check?
A rental credit check usually includes your credit score, full credit report, payment history, debt amounts, and any public records like bankruptcies or evictions. Landlords might also see credit inquiries and how much of your credit you’re currently using.
They are also paying attention to patterns. A few late payments from years ago may matter less than recent financial stability.
How Credit Check Results Impact Rental Applications for Landlords and Tenants
For landlords, credit results help predict whether rent will be paid on time. A high credit score or clean history may speed up approval, while missed payments, collections, or high debt can lead to extra questions.
On the other hand, for tenants, poor credit doesn’t always mean “no.” Many landlords consider other factors too, like income, references, or offering a larger deposit. Knowing what shows up on your report gives you a chance to explain or improve your situation ahead of time.
How to Pass a Rental Credit Check? 8 Proven Strategies
We’ve listed down 8 smart steps that can help you feel ready and improve your chances of getting the apartment you want!
Pay Off Past-Due Accounts
Past-due accounts like unpaid credit cards, collections, or old utility bills can significantly lower your credit score and create red flags for landlords. Start by checking your credit report to find any delinquent accounts. Then, focus on paying off or settling the most recent or highest-impact debts first. Even a partial payment can show progress.
Some creditors may agree to a “pay for delete” arrangement, where they remove the account from your credit report after payment, although this isn’t guaranteed. You should keep records of any payments or agreements in case you need to explain them to a potential landlord.
Lower Your Credit Utilization Ratio
Your credit utilization ratio is the amount of credit you’re using compared to your total credit limit. For example, using $900 out of a $1,000 limit means you’re at 90% utilization, which looks risky to both lenders and landlords. Aim to keep this number below 30%, and under 10% if possible.
You can lower your ratio by paying down credit card balances, increasing your credit limits (by requesting a raise from your card issuer), or spreading purchases across multiple cards. This step alone can boost your bad credit score when renting a house within a few weeks!
Regularly Review and Dispute Credit Report Errors
It’s not uncommon for credit reports to include errors like accounts that don’t belong to you, incorrect balances, or late payments that were paid on time. These mistakes can hurt your score and misrepresent your financial situation to a landlord. You need to check for anything inaccurate or outdated, then file disputes online through each credit bureau’s website. Creditors have 30 days to investigate and respond.
Clearing up errors is one of the fastest ways to clean up your credit before a rental check.
Establish or Rebuild Credit
No credit history can be just as limiting as bad credit. If you’re starting from scratch, consider opening a secured credit card, where you deposit a set amount as collateral. Alternatively, look into credit-builder loans or services that report rent or utility payments to the credit bureaus.
Over time, these actions build a positive credit history and can improve your score.
Provide Proof of Income and Job Stability
A steady income can help offset a less-than-perfect credit score. Landlords want to know you can afford the rent. Gather recent pay stubs, a letter from your employer, or bank statements that show consistent deposits. If you’re self-employed, include recent tax returns or profit/loss statements. In general, landlords look for income that’s 2.5 to 3 times the monthly rent. Showing that you meet or exceed this can help convince them you're financially stable.
Offer a Larger Security Deposit or Co-Signer
Offering a larger security deposit, such as two months’ rent instead of one, can help reassure landlords that you're not a risky tenant. It shows you’re serious, financially committed, and have funds available in case anything goes wrong.
Some landlords may also allow you to bring in a co-signer (sometimes called a guarantor), usually a family member or close friend with good credit who agrees to be financially responsible. This adds another layer of security for the landlord and can be the tipping point in getting approved.
Get References from Past Landlords
Ask former landlords to write short letters or be available for a call to confirm that you paid rent on time, kept the property in good condition, and were respectful and easy to work with. These personal testimonials give landlords real-world proof that you're a responsible tenant!
What Landlords Can Do When Tenants Have Low Credit Scores
Instead of turning away every applicant with imperfect credit, landlords can take smart steps to protect their property while still giving responsible renters a fair chance.
- Step 1. Require larger security deposits to mitigate risk
- Step 2. Accept co-signers or guarantors with strong credit
- Step 3. Verify steady income and employment as additional assurance
- Step 4. Consider flexible credit criteria (without compromising standards)
Step 1. Require a Larger Security Deposit to Mitigate Risk
One of the most common and effective ways to manage risk is by asking for a larger security deposit. For tenants with lower credit, landlords may request an amount equal to two months’ rent instead of the usual one.
A higher deposit also signals that the tenant is serious and has some financial stability. Be sure to follow state and local laws, as some places limit how much landlords can charge for a security deposit based on credit score or require it to be returned with interest.
Step 2. Accept Co-Signers or Guarantors with Strong Credit
Allowing a co-signer or guarantor can be a win-win for both landlords and tenants. The co-signer agrees to cover rent payments if the tenant fails to pay. It’s especially helpful for students, young renters, or people rebuilding credit who may not yet qualify on their own.
Co-signers are typically required to show strong credit, stable income, and a history of reliable financial behavior. Landlords should always screen co-signers just as thoroughly as tenants. Keep in mind, though, that not all landlords or management companies allow co-signers, so it’s good to decide your policy in advance and make it clear in your listings.
Step 3. Verify Steady Income and Employment as Additional Assurance
Credit scores only tell part of the story. A tenant with a low score but a steady, well-paying job may still be more than capable of affording rent. Landlords can request proof of income to evaluate financial reliability. In addition, employment verification, such as a call to the tenant’s employer or a signed letter on company letterhead, adds more confidence.
Step 4. Consider Flexible Credit Criteria (Without Compromising Standards)
Landlords might consider approving applicants with lower credit scores when they meet other strong criteria: long rental history, positive landlord references, high income, or a co-signer. Some even use a scoring system to weigh different factors like income, rental history, and debt load. This thoughtful, case-by-case approach allows landlords to fill vacancies with qualified tenants who may have been overlooked by stricter rules.
What Are The Requirements for a Credit Check to Rent an Apartment?
This section breaks down what you’ll need for a credit check to rent an apartment, what landlords expect, and how to meet those requirements.
Rental Credit Check vs. Apartment Credit Check
The terms “rental credit check” and “apartment credit check” are often used interchangeably, but they mean the same thing: a look into your credit report as part of a rental application. This process typically asks for these things:
- Your credit score (usually from one or more credit bureaus)
- A detailed credit report showing payment history, outstanding debts, and any collections or bankruptcies
- Possibly, credit inquiries from other recent applications
Some landlords may use a “soft” credit check, which won’t affect your credit score, while others use a “hard” check, which could result in a small, temporary dip in your score. Either way, it gives landlords a snapshot of how you handle financial responsibilities.
Common Credit Score Thresholds for Apartments
There’s no universal credit score you need to rent an apartment, but many landlords use certain ranges as a guide:
That said, smaller landlords may be more flexible than large property management companies.
How To Pass Apartment Credit Check Requirements?
To pass a credit check to rent an apartment, preparation is key!
- Check your credit report before applying: Use sites like AnnualCreditReport.com to get a free copy. Fix any errors you find.
- Pay down outstanding debts: Reducing your balances can improve your credit utilization ratio and boost your score.
- Have proof of income ready: Landlords want to see if you can afford rent. Include pay stubs, bank statements, or an offer letter.
- Provide letters of recommendation: Past landlords or even employers can vouch for your reliability and help balance out weaker credit.
- Write a short explanation letter: If your credit was impacted by a one-time event, like a medical emergency or job loss, briefly explain the situation and how it’s changed.
- Offer a larger deposit or co-signer: Show the landlord you’re willing to go the extra mile to earn their trust.
How Landlords Can Protect The Rental Process from Credit Check Scams
As rental demand rises, so do rental scams. Landlords are often targeted just as much as tenants. One growing concern is fake credit reports or scammy tenant screening processes. When landlords rely on unverified information, they risk leasing to unqualified tenants or falling victim to identity fraud.
Fortunately, there are smart, simple ways to keep the rental process secure.
Types of Fake Credit Checks and Rental Scams
Scammers have gotten creative with ways to fake their credit standing or bypass legitimate screening.
- Doctored credit reports: Tenants may submit a PDF that looks official but was edited or generated using online templates.
- Fake credit check websites: Some applicants offer to “save time” by using their own credit report from a sketchy site that isn’t tied to any real credit bureau.
- Identity swapping: A scammer may apply under someone else’s name with stolen information or fake ID documents, trying to pass off a clean credit history.
- False references and employment details: Fake landlords or employers may be in on the scam or are created with burner phone numbers and fake emails.
These scams often target landlords who don’t have a consistent screening system or who rely too heavily on documents provided by the tenant. Scammers may seem urgent or overly helpful in the process to push you into skipping normal checks.
Use Verified, Secure Credit Reporting Services
One of the most effective ways to avoid scams is by using a reputable, secure tenant screening service like LeaseRunner. Our platform allows landlords to request a credit report directly from a trusted source, with the tenant's full consent.
Since LeaseRunner is built for rentals, it follows strict data protection standards to keep sensitive info safe. That means less risk of identity theft or bad data, and more peace of mind for both landlords and renters. Plus, for tenants, going through a professional service shows you’re serious, organized, and ready to make a solid impression.
Implement Multi-Factor Tenant Verification in the Screening Process
A strong tenant screening process doesn’t stop at a credit check. Adding multi-factor verification can help catch fraud early and ensure you're working with real, qualified applicants.
- Photo ID verification: Always request a clear copy of a government-issued photo ID (like a driver's license or passport), and verify that it matches the name, date of birth, and other personal details provided in the application. Consider asking to see the ID in person during a showing or virtual meeting when possible.
- Proof of income and employment: Require recent pay stubs, W-2s, or bank statements to verify income. For self-employed applicants, tax returns or 1099 forms can work as well. Take it a step further by calling the employer directly, but make sure to use a publicly listed company number rather than any contact info the applicant provides.
- Past rental references: Contact previous landlords to ask about the applicant’s payment history, behavior, and lease violations (if any).
- Cross-check info: Match the name, phone number, employer, and addresses across all documents. Inconsistencies may signal a red flag.
Conclusion
Now that you understand how to pass a rental credit check, it’s time to take action. Clean up what you can, get your paperwork ready, and go make your next move with confidence! For more tips on renting smarter and improving your application game, check out the LeaseRunner blog!
FAQs
Q1. What credit bureau do apartments use?
Most landlords and property management companies check credit reports from one of the three major credit bureaus: Experian, Equifax, or TransUnion. Some may use only one, while others go through third-party tenant screening services that pull data from multiple bureaus. You typically won’t know in advance which one they’ll use, so it’s a good idea to review your reports from all three.
Q2. What do landlords look for in a credit report?
Landlords usually focus on key indicators of financial responsibility: payment history, credit score, outstanding debts, collections or charge-offs, and any past evictions or bankruptcies. They’re essentially looking for signs that you’ll pay rent on time and manage your finances well.
Q3. Can I rent an apartment with bad credit?
Yes, it’s possible. While a low score can make it harder, many landlords will still consider your application if you have solid income, a strong rental history, or can provide a larger security deposit or co-signer.
Q4. Do all landlords check your credit?
Not always. Smaller landlords or private owners might skip the credit check and focus more on your rental history, income, or references. However, most professional property managers do run credit checks as part of a standard background screening.
