I Have a 500 Credit Score. Will I Be Able to Rent an Apartment?

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Having poor credit could make it difficult to rent a home. But you may have more options than you’d think in that scenario — read on to learn more. [[{“value”:”

When you apply for a credit card or loan, the issuer or lender checks your credit to make sure it’s not taking on too much risk in the course of giving its approval. Similarly, when you apply to rent an apartment, the landlord may perform a credit check to make sure you’re a tenant who’s likely to keep up with their monthly payments.

If your credit score is a 500, you may have a hard time getting approved for a rental. Experian, one of the three major credit bureaus, says that a score of 500 is considered poor. And TurboTenant says that most landlords want to rent to people with a score of at least 600.

But you’re not necessarily doomed if you only have a 500 credit score. There are other options you can pursue that might get your name on an apartment lease anyway.

How to rent an apartment with poor credit

If you’re applying for a rental with poor credit, you may need to go out of your way to convince a landlord you can be trusted to pay your rent on time. To that end, here are some steps you can take.

1. Get a cosigner

If you have a parent or sibling with great credit who’s willing to cosign your lease, a landlord might agree to rent to you. But in that situation, your cosigner is on the hook for any payments you don’t make.

You don’t want to put someone who’s doing you that huge favor in that sort of position. So before you sign a lease, make absolutely sure you can afford the rent on your own.

2. Offer up a larger deposit

It’s common for landlords to take a security deposit when a prospective tenant signs a new lease. One way to overcome a poor credit score is to offer up a larger security deposit.

Your landlord’s standard practice may be to collect a security deposit equal to a month of rent upfront. If you have the cash in your savings account to cover a two-month security deposit, handing that sum over might get a landlord to agree to move forward with a lease.

3. Prove that you can pay your rent despite your poor credit

Maybe your credit score dropped because you fell behind on a few bills. Or maybe you maxed out your credit cards due to a financial emergency and are in the process of paying them off.

If you explain all of this to your landlord and are able to offer proof that you’re in a more stable place now, they may agree to rent to you. For example, if you can show that you have some money in the bank and that your salary is more than enough to cover the rent, they may be willing to take a chance on you despite a lower credit score.

How to boost your credit score

A 500 credit score could be an impediment to renting a home. So if that’s what your score looks like, it’s in your best interest to try to bring it up. You can do so by:

Paying bills on timeWhittling down existing credit card debtReviewing your credit report and correcting errors it might containBecoming an authorized user on a family member’s credit card account in good standing

Ultimately, a 500 credit score won’t automatically wreck your chances of being able to rent an apartment. But it’s best to do what you can to raise your score so you have more financial options in general.

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