Credit scores are one of the most important factors landlords consider when screening rental applicants. A tenant’s credit history reveals their financial responsibility, payment reliability, and overall trustworthiness—critical information for landlords deciding whether to rent to someone. But what credit score do landlords actually look at? What range is considered acceptable? How much weight does credit carry in the overall screening process?
The answer is more nuanced than a simple number. Different landlords have different standards, and various credit scoring models exist. Additionally, fair housing laws impose limits on how landlords can use credit information, and state laws vary significantly in their requirements and protections. Understanding these nuances is essential for both landlords making informed screening decisions and tenants seeking to improve their rental prospects.
This comprehensive guide walks you through everything landlords need to know about credit scores in tenant screening, including what scores landlords typically look for, how to interpret credit reports, fair housing considerations, and best practices for making informed decisions. Tenants will also find valuable insights into how their credit affects their rental prospects and what they can do to improve their chances of approval.
Understanding Credit Scores: The Basics
What Is a Credit Score?
A credit score is a three-digit number, typically ranging from 300 to 850, that represents a person’s creditworthiness based on their credit history. Credit scores are calculated by credit reporting agencies using complex algorithms that analyze multiple factors, including payment history, amounts owed, length of credit history, credit mix, and new credit inquiries. Think of a credit score as a financial report card—it tells lenders and landlords how reliably a person manages debt and pays their obligations.
The most widely used credit scoring model is the FICO Score, developed by Fair Isaac Corporation. However, alternative models like VantageScore, also ranging from 300 to 850, are increasingly popular. Some specialty agencies even offer rental-specific scores designed specifically for tenant screening. Understanding which scoring model a landlord uses is important because different models may produce slightly different scores for the same person.
Credit Score Ranges and What They Mean
Credit scores fall into distinct ranges, each carrying different implications for rental approval. A score between 750 and 850 is considered excellent and represents very low risk from a landlord’s perspective. Applicants in this range have a strong likelihood of approval and typically qualify for the lowest security deposits and most favorable terms.
Scores between 700 and 749 are considered good and indicate low risk. Most landlords view applicants in this range favorably and will likely approve them without additional requirements. Scores between 650 and 699 fall into the fair range and represent moderate risk. Applicants here may face additional screening or be required to pay higher security deposits. Scores between 550 and 649 are considered poor and signal higher risk; these applicants may need a co-signer or to pay a significantly higher deposit. Finally, scores below 550 are viewed as very poor and represent very high risk, often resulting in denial or substantial additional requirements.
What Credit Score Do Landlords Actually Look For?
Typical Landlord Credit Score Requirements
Most landlords establish a minimum credit score threshold for approval, though standards vary considerably depending on the type of property and landlord. Large property management companies, which manage apartment complexes and multi-unit properties, often require a minimum score of 650 to 700. Some upscale or high-demand properties may push this threshold even higher, requiring 700 or above. These companies tend to use standardized screening criteria and may rely on automated systems that automatically deny applicants below their threshold.
Mid-range landlords, who typically manage a handful of properties, often look for scores of 600 to 650 as a baseline but may show flexibility if other positive factors are present. Private landlords, particularly those managing single-family homes or smaller properties, tend to be more flexible. They may accept scores as low as 550 to 600 if the applicant demonstrates strong rental history, stable employment, or other compensating factors. Luxury or high-demand properties in competitive markets may require 750 or higher to ensure maximum reliability and minimize risk.
Credit Score Is Not the Only Factor
While credit scores are important, it’s critical to understand that most landlords do not rely on credit alone. A comprehensive screening process typically includes multiple components working together. Income verification is essential—most landlords require that an applicant’s gross monthly income be at least 2.5 to 3 times the monthly rent. Employment history and stability matter significantly, as they indicate whether the applicant can sustain rental payments. Rental history and references from previous landlords provide direct evidence of how the applicant has treated rental properties and whether they paid rent on time. Criminal background checks and eviction history are also standard components of thorough screening.
Perhaps most importantly, landlords review the detailed credit report itself, not just the credit score. The full report reveals the story behind the number—whether late payments were recent or years ago, whether they resulted from temporary hardship or chronic irresponsibility, and whether the applicant has otherwise maintained good financial habits. This holistic approach allows landlords to make more informed decisions than a credit score alone would permit.
How Landlords Use Credit Scores in the Screening Process
Landlords use credit scores as one tool in a multi-factor screening process, and understanding how they fit into the overall decision-making framework is valuable for both landlords and applicants. Initially, the credit score may serve as a filter to narrow the applicant pool. A landlord managing many applications might use the score to quickly identify which applicants meet minimum standards and warrant further investigation.
For applicants who pass the initial screening, a lower credit score prompts deeper investigation into their financial history and circumstances. Rather than automatic denial, the landlord examines the credit report to understand what caused the lower score and whether there are mitigating factors. The credit score also influences deposit determination—applicants with lower scores are often required to pay higher security deposits to offset the perceived risk. Some landlords require a co-signer (typically a parent or other financially responsible person) for applicants with poor credit. Ultimately, the credit score is weighed alongside all other factors to make a final approval or denial decision.
Reading and Interpreting Credit Reports
When landlords pull a credit report, they are looking for much more than just a single number. The credit report provides a detailed financial history that helps explain the story behind the score. Payment history is often the first thing landlords examine, as it shows whether the applicant pays bills on time or has a pattern of late or missed payments. Accounts in collections, recent delinquencies, or a history of unpaid debts are red flags that may signal financial instability.
Amounts owed, or the total outstanding debt, also play a role. High credit utilization—using most of the available credit—suggests that the applicant may be financially stretched, which could make it harder to pay rent reliably. The length of credit history matters too; a longer history with established accounts is generally more reassuring than a short or sporadic credit history. Landlords also review the types of credit the applicant has managed, such as credit cards, auto loans, and mortgages. A balanced mix, handled responsibly, is a positive sign. Finally, public records like bankruptcies, tax liens, judgments, and prior evictions are carefully noted, as these can be deal-breakers for many landlords.
Differences: Apartment Complexes vs. Private Landlords
The type of landlord you’re dealing with can significantly affect how credit scores are used in the screening process. Large property management companies that oversee apartment complexes often have strict, standardized criteria. They may set a hard minimum credit score, such as 650 or 700, and use automated screening software that denies applicants who don’t meet the threshold. These companies are less likely to make exceptions or consider personal explanations for a low score. Applicants with scores below the cutoff may be required to pay higher deposits or provide a co-signer, but in many cases, they are simply denied.
Private landlords, on the other hand, often take a more personal and flexible approach. While they may still check credit, they are more likely to weigh other factors—such as rental history, income, and references—alongside the credit score. If a tenant can explain a low score due to medical bills, a temporary job loss, or other one-time issues (and can show strong current income or a history of paying rent on time), a private landlord may be willing to overlook a less-than-perfect score. This flexibility is especially common in single-family rentals or smaller buildings, where the landlord is more directly involved in the decision-making process.
Fair Housing Considerations & Legal Limits
Landlords must also be mindful of fair housing laws when using credit scores in the screening process. The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. This means landlords must apply their credit screening policies consistently to all applicants. For example, setting a higher credit score requirement for families with children or for applicants of a certain background is illegal and could result in serious legal consequences.
The Equal Credit Opportunity Act (ECOA) further requires landlords to make credit decisions fairly and without discrimination. Applicants have the right to know if their credit was the reason for denial, and they can dispute inaccurate information. Best practices include applying the same standards to everyone, reviewing the full credit report (not just the score), allowing applicants to explain negative marks, and keeping clear documentation of all screening decisions. Landlords should also be aware of “disparate impact,” which occurs when a neutral policy—like a strict credit cutoff—ends up disproportionately excluding protected groups. Adjusting screening policies to avoid this risk is both good business and good compliance.
What Else Do Landlords Check?
While credit is a key piece of the puzzle, landlords rarely make decisions based on credit score alone. Income and employment verification are crucial; most landlords want to see that an applicant’s gross monthly income is at least 2.5 to 3 times the rent. Rental history and references from previous landlords provide direct insight into the applicant’s reliability as a tenant. Criminal background checks and eviction history are also standard, helping landlords assess risk and protect their property and other tenants. A thorough screening process considers all these elements together, creating a complete picture of the applicant’s suitability.
Tips for Tenants
Tenants hoping to qualify for a rental—even if their credit isn’t perfect—should start by checking their own credit report for errors and taking steps to improve their score where possible. Being honest about any credit issues and providing written explanations or supporting documents can help reassure landlords. Offering proof of stable income, strong references, or a larger security deposit may also strengthen an application. In some cases, having a qualified co-signer can make the difference between approval and denial.
Common Mistakes Landlords Make
Landlords sometimes make the mistake of relying solely on the credit score, ignoring the valuable context provided by the full report and other screening factors. Applying inconsistent standards to different applicants, failing to allow for explanations of negative credit, or not complying with fair housing and state laws can expose landlords to legal risk. It’s also important to document all screening decisions and keep clear records in case of disputes or regulatory review.
State Law Tips for Credit Screening
Credit screening laws can vary by state, and it’s important for landlords to understand the rules in their jurisdiction. For example, some states like California and New York have specific requirements about how tenant screening is conducted and how application fees are handled. In California, landlords must provide a copy of the credit report if requested and cannot charge more than a set amount for application screening. New York law prohibits landlords from charging excessive application fees and requires prompt notification if credit information results in a denial. In Texas and many other states, there are fewer restrictions, but landlords are still expected to use credit information fairly and in compliance with federal law. Regardless of location, landlords should always check local and state statutes or consult a qualified attorney to ensure their screening process is compliant.
Quick Reference: Credit Scores and Tenant Screening
Generally, a credit score above 700 gives applicants the best chance of approval and access to the most favorable terms, such as lower deposits. Scores in the 650–699 range are usually acceptable, though landlords may want to see additional strengths like stable income or a good rental history. Applicants in the 600–649 range may still be approved, but often with conditions such as a higher deposit or the need for a co-signer. Scores below 600 are considered high risk; approval is less likely unless there are strong compensating factors, such as an excellent rental record or verifiable income well above the rent.
Remember, the credit score is just one part of the equation. Responsible landlords always look at the full picture, weighing credit alongside income, references, and background. Tenants should be prepared to discuss their financial story honestly and provide documents that help make their case.
Call to Action: Let AAOL Support Your Screening Process
Screening tenants is one of the most important responsibilities for landlords, and doing it right protects your property, your business, and your peace of mind. The American Association of Landlords (AAOL) provides members with up-to-date screening guides, sample forms, compliance resources, and expert support to help you make smart, fair decisions. Whether you’re a seasoned property manager or a first-time landlord, AAOL’s tools and community can help you navigate every step of the process with confidence.
Protect your investments and set yourself up for success—join AAOL today at aaol.org for trusted landlord resources and tenant screening tools.
This article is for informational purposes and does not constitute legal advice. Always review your state laws and consult a qualified attorney for specific guidance.
