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45 millions of Americans have no credit score or bad credit
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45 millions of Americans have no credit score or bad credit

Blog Post 45 millions of Americans have no credit score or bad credit

45 millions of Americans have no credit score or bad credit
Apr

23

2017

45 millions of Americans have no credit score or bad credit

Are you ever wondering why a landlord is refusing to approve you for an apartment after running your credit checks? Is it because you don’t have any credit established? Well, you’re not the only one. As research shows, there are close to 26 million Americans that do not have any credit history with any of the credit agencies, such as TransUnion, Experian or Equifax. Another 19 million citizens have very limited or outdated credit history that these agencies do not have any credit scores assigned.

How Many People Have Bad Credit? 

Well, this number is even higher and it’s harder to estimate.  Bad credit report affects people daily due to various factors, such as broken leases, evictions, divorces, bankruptcies and more.  
It estimated that about 1/3 of American have a credit score lower than 600, which automatically puts someone below the bare minimum, which speaks for automatic apartment denial. 

How Do Credit Scores Affect Renting?  

Many apartment complexes or private landlords want someone with a credit score of at least 620.  Anything lower than that may indicated a high risk of default on rental payments.
If you have a low credit score, it does not mean that you won’t get approved at all.  Low credit score sometimes means that you have some unpaid bills, perhaps even medical bills or school loans.  You can easily fix them by making the low monthly payments and in a couple of months, your credit would be up to par.
  However, the red flags for every landlord are: unpaid rental payments, evictions or bankruptcies on credit report. It will simply indicate to a landlord that you are unreliable and may default on rent payments at any time.

Ways To Get Approved For a Rental   

Your main goal is to get that credit score at lease to be above 620. It would take some time with proper management.  However, in the short term, in order to get approved for an apartment, we recommend the following:
  • Don’t apply for every apartment  –  make sure that landlords won’t run a hard credit check on you as it will knock some points of your credit score. Pick 1-2 apartments of your choice.
  • Provide proof of employment  –  make sure you can verifiable income of 3 times the monthly rent either in paystubs from employer or in bank statements (if self-employed).
  • Additional References  –  past landlords and current employer are good references to provide
  • Get a Cosigner  –  if your credit is not up to par, your only chance of getting approved is to find a cosigner.  It can be anyone, your parent, guardian or a friend.  Solid income and credit required.
 

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