What Credit Score is Needed to Rent an Apartment?

For landlords, rental property is more than just a building; it’s an investment. Every time you choose a tenant, you’re weighing risk: the risk of late rent, property damage, or even eviction in some cases. One of the most powerful tools to help you manage that risk is the tenant’s credit score.

With over 20 years of experience in property management, I’ve seen how understanding credit scores can save landlords time, money, and stress. A tenant’s credit score gives you insight into how they handle money. It’s like an overview of their financial habits: whether they pay bills on time, how much debt they carry, and how stable their finances are. That kind of information is invaluable when deciding who to rent.

In this blog, we’ll break down exactly what a credit score is, how it impacts renting, and how you, as a landlord can build a strong screening policy. By the end of this blog, you’ll feel confident using credit scores in a way that protects your investment while being fair to applicants.

What is a Credit Score?

A credit score is a number that represents a person’s financial trustworthiness. In other words, it shows how likely someone is to pay their bills, loans, or rent on time. The most common type is the FICO score, which ranges from 300-850.

Credit Score Ranges:

Understanding the credit score ranges can help landlords assess risk more accurately. Here’s a detailed breakdown:

300-579 (Poor credit):

Tenants in this credit range are considered high risk. They may have a history of late payments. Renting to someone with a poor credit score could increase the chance of late rent or even eviction. If you still consider these applicants, you might require a co-signer, a larger security deposit, or proof of steady income.

580-669 (Fair credit):

These tenants are at moderate risk. They may have some missed payments in the past, but are not necessarily unreliable. Landlords can consider additional screening measures like checking rental references, employment stability, or asking a co-signer to reduce risks.

670-739 (Good credit):

This is a favorable credit range for most landlords. Tenants in this range are likely to pay rent on time and manage their financial obligations responsibly. They often have steady employment and a manageable debt load, making them reliable renters.

740-799 (Very good credit):

Tenants with very good credit are low-risk applicants. They have a strong payment history, low debt-to-income ratios, and few missed payments. Renting to them usually means minimal issues with rent collection.

800-850 (excellent credit):

This is a top tier of financial reliability. Tenants in this range almost always pay bills on time and handle their finances carefully. Landlords can feel confident in their ability to maintain a smooth rental experience.

Key Factors That Affect a Tenant’s Credit Score

Landlords don’t need to be credit experts, but understanding the main factors that influence a score can help in screening tenants more effectively:

1. Payment History:

The most critical factor. A tenant who regularly misses payments on credit cards, loans, or previous rent indicates potential issues.

2. Amounts Owed:

Tenants with a high debt-to-income ratio may struggle to pay rent consistently. Checking this helps landlords assess financial strain and predict reliability.

3. Length of Credit History:

Tenants with a longer credit history have a track record that shows how consistently they manage money over time. Short credit histories aren’t necessarily bad but may require additional verification.

4. Credit Mix:

Having different types of credit accounts, like credit cards, car loans, or personal loans, shows how tenants manage multiple financial responsibilities. Landlords can see this as an indicator of financial maturity.

5. New Credit Inquiries:

Multiple recent credit checks may indicate a tenant is seeking new credit quickly, which could suggest financial stress. While not a dealbreaker, landlords should consider this in context with other factors.

For landlords, the most important signals are payment history and amounts owed, since they directly affect whether a tenant will pay rent on time and manage their lease responsibly.

Why Credit Score Matters When Renting a Home or Apartment?

A tenant’s credit rating gives landlords a quick and reliable way to understand how someone handles money. When you rent out a home or apartment, you’re not just handing over a key; you’re trusting someone with a valuable asset. That’s why checking credit scores is one of the most important steps in tenant screening.

1. Credit Scores Predict How Likely a Renter is to Pay Rent on Time

Most credit ratings are based mainly on payment history, which tells you whether a person pays their bills as agreed. If someone often pays late on loans or credit cards, there’s a higher chance they may also pay rent late.

This matters because:

• Late rent disrupts your cash flow
• It may even move towards eviction if the issue continues

2. Credit Scores Show Financial Stress or Stability

A credit profile isn’t just about paying bills; it’s also about how much debt a tenant carries. Someone who uses too much credit or has high balances may be under financial pressure.

Financial stress can show up in ways landlords notice, such as:

• Making partial payments
• Struggling to pay rent during emergencies

3. Credit Scores Help Reduce Eviction Risk

Evictions are expensive and stressful for landlords. According to TransUnion, landlords who screen using credit scores experience fewer payment problems and fewer evictions. A strong credit score doesn’t guarantee a perfect tenant, but it significantly lowers the chances of:

• Missed rent
• Broken leases
• Sudden moveouts
• Collection issues

4. Credit Scores Protect Your Property and Your Time

Landlords aren’t just renting space; they are managing a business. When you choose a reliable tenant with a solid credit profile, you’re also protecting your time, energy, and investment.

A financially responsible tenant is more likely to:

• Follow the lease rules
• Take care of the rental unit
• Communicate early if problems come up

5. Credit Scores Help You Stay Consistent and Fair

Using credit scores as a part of your rental criteria provides a clear and consistent standard for every applicant. This protects landlords from;

• Accusation of unfair treatment
• Emotional decision making

A credit score is one of the best clues you can have about whether a tenant will pay rent on time, take care of your property, and stay financially stable during the lease.

What Credit Score is Needed to Rent an Apartment?

There is no single universal score that all landlords need to follow. The ideal credit score depends on various factors such as property type, rent amount, your risk tolerance, and the local rental market. But there are patterns and industry standards that can help you set a solid, fair, and consistent policy.

Here’s the breakdown to help landlords confidently decide the right minimum score depending on their property types.

1. Budget Apartment or Older Units

Recommended minimum: 580-620

• Works well in urban areas with high renter turnover
• Attract a large number of applicants
• Good for landlords who value occupancy rate over strict financial screening

This range is ideal when you want steady occupancy but still avoid the lowest credit tiers.

2. Mid-range Apartments or Single-Family Rentals

Recommended minimum: 630-680

• Balances affordability and reliability
• Targets work professionals and families
• Screens out tenants with repeated payment issues

This is the most commonly used standard among independent landlords.

3. High-End Units or Premium Rentals

Recommended minimum: 680-720+

Higher-end rentals usually require financially stable tenants. These units attract people who:

• Have strong employment
• Maintain good credit

Setting a higher minimum protects property value and rent consistency.

So, landlords need to use credit score as a guideline, not the sole decision factor. Most landlords target 620-700 for standard rentals, but higher-end units may require 680-720 to reduce risk. Understanding these ranges allows landlords to make informed, consistent, and fair decisions, reducing the risk of late payments, evictions, or property damage.

How to Set a Minimum Credit Score Policy as a Landlord?

Setting a minimum credit score needed for an apartment or property is one of the smartest ways landlords can protect their investment. A clear policy helps you.

• Screen tenants fairly and consistently
• Reduce the risk of late rent or eviction
• Make an informed decision without bias or guesswork
• Communicate expectations clearly to prospective renters

Here’s a step-by-step guide to creating a strong credit score policy.

1. Assess your Risk Tolerance

Before choosing a minimum score, consider:

• Property type: luxury or high-end units can require higher scores(680+), while budget apartments may allow lower scores(580-620).
• Rent price: A higher rent often means tenants need more financial stability.
• Market demand: In a competitive market, you can be selective. In a soft market, flexibility may help fill vacancies faster.
• Your personal comfort level: Some landlords are willing to take more risk with lower credit tenants if income and references are strong

2. Review Local and Federal Regulations

Before implementing any credit score requirement, it’s essential to stay compliant with fair housing laws.

• Apply the same minimum credit score standard to all applicants to avoid bias.
• Avoid policies that discriminate based on race, color, religion, sex, national origin, familial status, or disability.

3. Decide on a Minimum Credit Score

Based on your risk tolerance, property type, and local market, decide the minimum credit points.

• Older units: 580-620
• Single-family homes: 630-680
• Premium units: 680-720+

4. Communicate the Policy Clearly

Once your policy is set:

• Include the minimum credit score requirement in your rental ads(optional)
• Share it during pre-screening calls or applications to set expectations
• Ensure all team members and the property manager follow the same policy

Setting a minimum credit score policy is more than just picking a number. It’s about understanding risk, protecting your investment, and being fair to applicants.

What to Do If a Tenant Has a Low Credit Score?

Not every applicant will meet your minimum credit point requirement. However, a low credit score doesn’t automatically mean a tenant is unsuitable for an apartment. Many tenants may have legitimate reasons for a lower score, like student loans, medical bills, or limited credit history, but can still be responsible renters. Here’s how landlords can assess and manage applicants with low credit scores.

1. Review the Full Credit Report, Not Just the Score

A credit score alone doesn’t tell the whole story. Landlords need to look at:

• Payment history: Were late payments recent or long ago?
• Debt-to-income ratio: Can the tenant comfortably pay rent given their income?

2. Consider a Co-signer or Guarantor

If a tenant’s credit point is not good, you can ask a co-signer or guarantor with good credit to the prospective tenant. The co-signer agrees to pay rent if the tenant cannot, giving you extra protection.

• Cosigners and guarantors are ideal for students, young professionals, or first time renters
• Make sure the co-signer’s income and credit history meet your requirements.

3. Ask for a higher security deposit

A larger security deposit provides financial protection if a tenant misses payment or damages the property.

• Some landlords ask for 1.5-2 months’ rent instead of the standard 1 month
• This works well for tenants with fair or low credit scores who otherwise meet your income requirements

4. Verify Income and Employment Carefully

A tenant with low credit may still be a good risk if they have steady employment and a reliable income.

• Check that their income meets the 3X rent rule(tenant earns at least three times the monthly rent).

5. Offer a Shorter Lease Term

A shorter lease (6-12 months) allows you to monitor tenant behaviour without committing long-term.

• If the tenant performs well, you can renew the lease under standard terms
• Provides a trial period for borderline applicants

6. Consider Rent Payment Plans or Automatic Payments

Some landlords ask low-credit tenants to use automatic rent payments, ensuring on-time monthly rent.

• Can reduce the risk of late payments
• Provides peace of mind for both landlord and tenant

Hence, with the right screening and protective measures like co-signers, higher deposits, and shorter leases, landlords can safely rent to tenants who may otherwise be excluded.

Conclusion on Credit Requirements to Lease

Credit score plays a major role in helping landlords choose reliable tenants. By understanding what each credit score range means, setting a fair minimum score, and knowing how to screen tenants with lower credit, you protect your property, reduce late payments, and avoid costly turnovers.

While a credit score is important, it’s only one part of tenant screening. Landlords need to combine it with rental history, income verification, and alternative screening methods for a complete picture of the tenant’s profile before approving them.

Managing credit checks, verifying documents, handling applications, and making decisions can take a lot of time, especially if you own multiple rental properties. Let OKC Home Realty Services handle the screening for you. We make the entire process simple and hassle-free so you can focus on owning, not managing.

Contact OKC Home Realty Services today and get the tenants your property deserves.

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