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Steph Mickelson Steph Mickelson Steph Mickelson is a freelance writer based in Northwest Wisconsin who specializes in real estate, building materials, and design. When she's not writing, she can be found juggling kids and coffee.
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When you’re starting an apartment hunt and beginning to scour apartment rental websites, two common questions you may have are as follows: “Do I need a credit check to rent an apartment?” and, “Are there even no-credit-check apartments on the market?” The answer to this question will vary based on the apartment and individual landlord. In general, most landlords will do a credit check and use the results as a factor in determining whether or not a prospective tenant is likely to pay their rent on time.
But in some cases, you can get a no-credit-check apartment, which is an ideal situation if you’re working to pay off debt or are attempting to boost your credit score. Luckily for those with a low credit score, or those who don’t have a credit score at all, Nicole Hay of The Nicole Hay Team at Compass Real Estate says that, “Over the past several years, there has been a shift towards alternatives to credit checks,” and while it might not be significant everywhere, “it is still noticeable.”
What is a credit score?
To answer this question, it’s important to understand credit scores and what they mean.
If you have debt now or had it in the recent past, then you’ll have a credit score. A credit score is calculated using different factors that include the amount of debt you have, your payment history, the length of your credit history, new credit, and credit mix. Credit scores range from 300 to 800 and will often be a factor in determining whether or not you can rent an apartment.
The average credit score, or FICO® score, was 717 as of October 2023. A good credit score is between 670 and 739, and a very good score is above 740. Anything below 670 falls in the “fair” or “poor” categories and may make it more difficult to secure an apartment because the landlord may see it as evidence of not paying bills on time or unwise financial decisions.
Why would you need a no-credit-check apartment?
Hay says you might need a no-credit-check apartment “if [you’re] new to the market with no prior credit history or [you’re] someone who has bad credit history.”
Seamus Nally, the CEO at TurboTenant, adds, “These kinds of apartments can be really helpful for people who can afford to live there, but for whatever reason have bad credit.” These apartments are perfect for those who have “declared bankruptcy in the past or haven’t had the opportunity to build credit,” and have the means to make rent each month, but might not be eligible if the landlord or property manager requires a credit check.
If your credit score is between 581 and 669, you may still be able to rent an apartment, but if it falls below 580, landlords may avoid renting to you. A no-credit-check apartment can allow you to rent an apartment based on qualifying factors other than your credit score. And if you don’t have a credit score at all because you have no history of borrowing money, a no-credit-check apartment may be the best option.
How to Rent a No-Credit-Check Apartment
There are a few ways to find a no-credit-check apartment that may work for you.
- Seek out an 80/20 building. Hay explains that in 80/20 buildings, “the owner is required to fill a certain percentage of a property with low-income housing to qualify for tax-exempt financing.” This is beneficial for renters “who don’t have access to building good credit.”
- Find a private landlord. They may be willing to rent to you without checking your credit. Because these rentals aren’t run by a property management company, they can be more flexible.
- Rent month-to-month. In this arrangement, landlords may be more willing to forgo the credit check. A month-to-month lease can allow you to get a rental even if you have poor or no credit, and the landlord knows that they don’t have to renew the lease if you can’t pay the rent.
- Give proof of your income and savings. This shows the landlord that you can afford the apartment and have the means to pay your rent on time — even if your credit score is low or nonexistent.
- Enlist a co-signer. Find someone who agrees to take the responsibility for paying the rent in the event that you can’t.
Renting a no-credit-check apartment may require some additional work to gather alternative documents that act as proof of your ability to pay rent. Nally says, “There are a lot of advantages with no-credit-check apartments — but beware of scams.” He recommends making sure “the landlord is legit before giving them any money or signing anything.”
