Why Does Credit Matter When Renting an Apartment?
Your credit score can affect the likelihood of being approved for an apartment because the higher your score, the lower your risk profile. Your history of on-time credit payments, for example, makes up a large portion of your credit score – signaling to landlords that you’ll pay your rent on time, too.
But your credit score is often just a starting point for landlords. They also might obtain your credit report to get a glimpse into your debts and any past bankruptcy, or look at your rental history and income, for example. But it’s things like defaulted accounts or debts in collection that’ll hurt your chances of approval the most.2 Think about it: It makes sense that a landlord may be hesitant to sign a lease with a renter who’s been evicted in the past, has no source of steady income, or has a history of delinquent accounts.