Background checks are a prerequisite for any prospective tenant in most states in the US. Credit scores are a crucial part of the background checks carried out by landlords and letting agencies on would-be tenants. A credit score paints a picture of your financial aptness and helps landlords determine your ability to promptly service payments.
Credit scores are primarily determined by a person’s balance percentage and payment history, and range from ‘Very Bad’ to ‘Excellent’. A tenant with the former carries the highest risk of defaulting on their financial obligations (read rent) while those with excellent scores pose the least risks.
This article explores what different credit scores mean on your chances of getting an apartment in New York City.
What Credit Score Do You Need to Rent an Apartment in NYC?
Many would-be tenants forget how important a credit score is in the house-hunting process. Landlords and letting agencies use these scores to evaluate a potential tenant’s ability to pay rent on time.
Credit scores are calculated in a range of 300-850, with scores above 650 considered to have lower risks and as such easy to deal with in terms of meeting payment deadlines. While this is not a definitive number, it is the most common figure looked at by landlords.
A score from 300-559 is considered a huge risk and will negatively impact one’s chances of getting approved. Some landlords in NYC may accept applications from prospective tenants with a credit score of 560-649, but this rarely happens. In case one gets approved with such a score, chances are high the quality of the apartment on offer is not up to par.
Decent apartments that offer acceptable levels of comfort have high demand. Landlords are aware of this and will in most cases prefer tenants with higher credit scores. On the flip side, landlords may opt for a lower credit score if their building is in a wanting condition.
What Tenants Need to Know About Their Credit Score
Every potential tenant needs to know how their credit score affects their chances of landing a dream apartment. While the possibility of getting the tenancy application approved depends on various factors, having a high credit score greatly improves one’s chances of getting accepted.
Most providers of unfurnished and furnished rentals in NYC require a fair-to-good credit score to approve a tenancy. It is imperative for prospective tenants to continuously monitor their credit scores to reduce the possibility of skewed scores.
However, having a poor credit score or non-at-all should not impede a tenant from getting their desired house. In such cases, one may use a guarantor to vouch on their behalf.
Can I Still Get an Apartment with a Low Credit Score?
The last couple of years have been very hard on everyone, with the pandemic wreaking havoc on the economy. A lot of us have lost loved ones, folded up businesses, lost jobs, and run into debt. Many people who were once successful may be struggling to get back on their feet and their once perfect credit scores are altogether ruined.
Having a bad credit score does not necessarily mean you cannot rent in New York City. There are several listings whose credit score requirement is not strict. Although these apartments may not be the best, they offer an opportunity to rebuild. The best practice is to improve your credit score by regularly making timely payments.
For instance, if your credit score took a dip because of the pandemic, and you’ve just gotten back on your feet, your employer can act as a reference in your application. Proof of salary and commitment can be all that is needed to get an apartment.
Conclusion
To wrap it up, landlords and letting agencies carry out background checks on prospective tenants to gauge their suitability. As part of these checks, credit scores are crucial in determining a prospective tenant’s ability to make timely payments. In NYC, the ideal credit score is from 650-700. This category is regarded to be low risk and therefore easier to deal with. The higher the credit score, the better your chances of getting approved.
Even so, it’s important to note that, even with a score of 650-700, the landlord or letting agency is not bound by any law to stick to this selection criteria and may even ask for a higher score. Equally, a low credit score or lack of it does not mean you cannot get an apartment. Trusted referrals and proof of salary may be all that is needed to get approval.
