What Credit Score Is Needed to Rent a House
Looking for a new place to live can be exciting and stressful all at the same time. If you are in a situation where you have to move quickly, it can be even more stressful. When you want to rent a house, it is important to know important information such as what credit score is needed.
In general, there is not a set credit score you need to rent a house. Depending on the location and cost of the home, the landlord may have specific criteria they want. Before you start your house rental search, check out this article to find out what credit score is needed to rent a house.
What is a Credit Score?
Before you can understand what credit score is needed to rent a house, it is important to understand credit scores.
Credit scores are numbers that credit bureaus generate based on your credit usage and payment history.
This information is found on your credit report. This information gives landlords an idea of how likely you are to be an ideal renter. Credit scores are three digit numbers that fall between 300 and 850. This number indicates how much of a risk you are.
How Does a Landlord Use Your Credit Score?
Even though a landlord is not a traditional lender, they are investing in you by allowing you to rent a house from them. They use your credit score to indicate how likely you are to pay your rent on time. A landlord looks at your credit report to see how you have handled credit in the past and how well you have repaid loans and credit cards.
What is the Ideal Credit Score for Renting a House?
The national average for most adults in America is 670. This is generally what credit score is needed to rent a house as it is considered a very good score for renters. When looking for an ideal score for renting a house, it usually is less than the credit score needed to purchase a house. A landlord is looking for you to have a credit score that is 600 to 650. As a renter, you will not have the luxury of paying the mortgage to improve your credit score.
What Is the Minimum Credit Score You Need?
While having a credit score above 600 is what a landlord wants you to have, many landlords may not rent you a house if your credit score is lower than 620. Your credit score needs depends on the area in which you are renting.
If you are looking for a house rental in an expensive area, you may need a credit score of 700.
If you are looking for a house rental in a less expensive area, you may need a credit score of 600.
What Is Insufficient Credit?
When a lender looks are your credit report, it may show that you have insufficient credit.
This means that you do not have a long enough credit history to show up on your credit report.
In addition, you may not have had enough credit accounts, such as loans or credit cards, to have an impact on your credit report. This is often found with young individuals, such as students or older individuals that have been taken care of by their families. If your credit report shows you have insufficient credit, you will have to prove your credit risk in other ways.
What Happens If You Have Bad Credit?
If you have poor credit, there are some actions you should take to improve your credit.
When you have insufficient credit, you can establish your credit by obtaining a credit card and using it wisely.
You can also get a loan that you pay back on time in the right amount to create an excellent credit score.
When you need to improve your credit score, you can reduce the amount of debt you carry.
You can also make sure that you make all of your payments in full and on time.
This is a slow process but will create good habits and improve your credit score.
What Should I Do?
If you cannot improve your credit in time, there are some other steps that may allow you to rent a house even with bad or insufficient credit.
You can get a roommate that has good credit, which can balance out your bad credit.
You can also get someone to cosign your lease agreement. This is someone that is guaranteeing that you will pay your monthly rent payments. If you do not make your payments, the cosigner is responsible for making your payments.
Looking For Extra Help?
When it comes to looking for a house to rent, your credit score is an important factor. It can be challenging to build credit or repair credit. It is a good idea to obtain help when you need to know more about improving your credit. The Goalry Mall is here for you when you need help. We offer you all the resources you need to find out how to improve your credit score. When you are on a path to improving your credit score, a budget can help you. The Goalry Mall offers you a calculator to determine the best budget to help you meet your goals. Do not attempt to walk down the path to improving your credit alone. Check out the Goalry Mall first.
Be Smart about Your Money. The Creditry Store Will Help You.
Conclusion
When you want to rent a house, you must have a decent credit score to allow you to rent. Depending on the area in which you want to rent, you may need a higher credit score. The nicer the area means, the more likely you must have a better credit score. If you are not certain of your credit score, you can get a free copy of your credit report to see everything that a potential landlord will see. Reviewing your credit report allows you to know areas where you need to improve to reach a higher credit score.