Can You Get an Apartment With a 500 Credit Score?

Having a credit score of 500 can make renting an apartment challenging, but it is possible with the right approach A credit score of 500 is considered poor by most standards and will likely raise red flags for many landlords However, there are still options available for securing an apartment even with low credit.

Why Credit Scores Matter for Renting

Most landlords and property managers screen tenant applicants by checking their credit report and score. They do this to gauge the financial responsibility of applicants and determine if they will likely pay rent reliably and on time.

Landlords often have minimum credit score requirements, with many wanting tenants to have at least a 600 or 650 credit score. According to RentCafe, the average credit score for approved tenants in 2017 was around 650. Applicants with scores below 600 were often denied.

So a credit score of 500 puts an applicant in the high risk category for many landlords. A low score indicates past issues like missed payments, high balances, collections, or public records like bankruptcy. While poor credit doesn’t preclude you from renting, it makes it more challenging.

How Landlords Assess Applicants

When reviewing a rental application, landlords don’t look at credit scores in isolation They also consider factors like your income, employment stability, rental history, references, and security deposit amount

If you have a low credit score, you need to make the other parts of your application stronger. This includes:

• Showing proof of steady income with pay stubs or tax returns Income should ideally be 3x the monthly rent amount

• Offering up front to pay a larger security deposit, such as 2-3 months rent instead of the typical 1 month.

• Providing great references from current or former landlords vouching for on-time rent payment.

• Getting a cosigner with good credit to sign the lease with you.

• Prepaying several months of rent upfront as a show of good faith.

• Having excellent rental history without late payments, evictions, or property damage.

Tips for Renting With a 500 Credit Score

If your credit score is around 500, here are some tips to boost your chances of approval:

• Look for private landlords. Credit requirements for smaller landlords are often less strict than those for large apartment complexes. Look on Craigslist, Facebook Marketplace, and other sites to find rentals that are listed privately.

• Explain any past credit issues – Briefly explain to the landlord if your low score is from medical issues or other circumstances out of your control.

• Offer an increased security deposit – Put down 2-3 months rent upfront so the landlord has a financial cushion.

• Provide stellar references – Great references from past landlords or employers can offset low credit.

• Do not sign the lease alone; ask a friend or family member with good credit to cosign it with you.

• Even if your credit is bad, having a lot of savings shows that you can pay the rent. Provide recent bank statements.

• Apply for apartments based on your income. Some income-restricted housing doesn’t check your credit and instead looks at how much money you make.

• Repair your credit first – Take a few months to improve your score before apartment hunting by paying down debts.

• Offer to prepay rent – Offering to prepay a few months of rent can give the landlord confidence.

With determination and smart negotiating, it’s possible to find apartments that will work with a 500 credit score. Improving your score over time will open up many more options as well.

Average Renter Credit Scores by City

According to RentCafe’s research, average renter credit scores vary widely between cities. While some cities averaged scores near 700, others had averages below 600.

Some examples of average renter credit scores by city include:

• San Francisco – 719
• Seattle – 699
• Los Angeles – 680
• Chicago – 651
• Houston – 637
• Philadelphia – 629
• Phoenix – 611
• San Antonio – 603
• Arlington, TX – 580

These numbers illustrate the range you may encounter when apartment hunting with a 500 credit score. In a city like San Francisco, far below the 719 average, an applicant would have a very difficult time. But in Arlington, TX, just above the 580 average, a 500 score tenant still has a decent shot at approval.

Geography and the local rental market will impact your odds. But in many areas, a 500 credit applicant can find options with the right approach.

Strategies for Renters with Low Credit

Here are some pro tips for renting an apartment when you have bad credit:

• Be honest on your application and let the landlord know you’ve had past credit difficulties but are working to improve. Transparency can help.

• Explore renting from private or independent landlords instead of large corporate apartment companies. Small landlords often have more flexibility.

• If possible, apply for apartments without credit checks. For example, units rented by individuals instead of professionals companies.

• Provide plenty of positive references to vouch for your reliability, like past landlords, employers, or acquaintances.

• Offer to set up automatic monthly payments from your checking account so the landlord knows rent will be paid on time.

• See if the landlord will approve you with an eligible guarantor who agrees to cover the lease if needed.

• Offer to sign a shorter initial lease, such as 6 months instead of 12, to reduce the landlord’s risk.

• If applicable, mention that your credit issues stem from one-time events like medical bills or divorce that have been resolved.

With persistence and the right game plan, there are still paths to getting approved for an apartment with a 500 credit score. While it presents challenges, it is certainly possible in many rental markets.

Improving Your Credit Score Over Time

The better your credit score, the easier it will be to rent an apartment. So take steps to boost your credit even while you are apartment hunting. Here are some tips:

• Make at least the minimum payments on all debts each month to build positive payment history.

• Pay down credit card and loan balances to lower your credit utilization ratio.

• Dispute any inaccuracies on your credit report by contacting the bureaus.

• Become an authorized user on someone else’s credit card to add positive history.

• Sign up for credit monitoring to stay on top of your score and any changes.

• Limit new credit applications to avoid too many hard inquiries on your report.

• Ask creditors for credit limit increases over time to lower your overall utilization.

• Enroll in automatic payments so you never miss a payment due to forgetting a bill.

With dedicated effort, you can substantially improve your credit within 6-12 months. A higher score unlocks more rental options.

The Bottom Line

A credit score of 500 makes getting approved for an apartment more of a challenge. But with the right preparation and techniques, renting with bad credit is certainly achievable. Being upfront about your credit situation and offsetting it with income, savings, references, and higher deposits can help sway landlords. And dedicating time to boost your credit opens doors. While it requires effort, tenants with poor credit can absolutely find great rentals.