When first-time renter Angelica Fattu-Logan, 20, started applying for apartments, she braced for rejection. But those rejections never came — in part because she had good credit.
"I applied to about three or four different apartments, and they all accepted me right away," says Fattu-Logan, a drugstore manager and college student from Peoria, Ariz., who recently moved into an apartment with her fiancée.
For young folks fearing rejection from landlords, Fattu-Logan's positive experience is heartening. It also illustrates an important point: Good credit can be especially helpful for first-time renters.
When you are new to renting, good credit can make up for other shortcomings in an application.
"If [applicants] have a good credit score, even if they haven't rented before, that means that they've handled their finances well and that they're responsible," said Laura Agadoni, a landlord and real estate writer based in Marietta, Ga. That could be enough to make up for a lack of a rental history, otherwise a major factor in rental decisions, she says.
Requirements can vary, but Agadoni said many landlords look for credit scores of 640 or higher for renters. They also consider factors such as income, debt and employment.
In some cases, those with good credit scores might not need to find a co-signer, a person — often a parent — who's equally responsible for making payments.
If you are approved with good credit and meet all the landlord's requirements, you will generally just have to pay the security deposit and rent described in the rental listing. But if you are approved with bad credit, you may have to pay a premium — not just on rent, but potentially for utilities, too.