How does my credit score influence the landlord's decision?

How does my credit score influence the landlord's decision?

Your credit score significantly influences a landlord’s decision when reviewing your rental application because it provides a clear, quantifiable measure of your financial reliability and responsibility.  A higher score indicates timely payments, low debt levels, and responsible credit management. This in turn makes you a more attractive tenant.


Conversely, a lower score may raise concerns about your credit reliability. This may lead to rejection.

What does my credit score mean? 

Your credit score is a three-digit number between 300 and 850 that summarizes your entire financial history. It is calculated based on your credit history, basically, everything you've done financially that involves borrowing money or paying debts


Here is the breakdown

Score range

Rating

781-850

Excellent

661-780

Good

601-660

Fair

500-600

Poor

300-499

Very poor

What determines your credit score?

Your credit score is determined by the following:

1. Your payment history: Do you pay debt on time?
2. Total debt: This is the amount of debt you owe
3. Length of credit history: How long have you been managing credit
4. Credit mix: Do you have a mix of different credit types, such as credit cards, personal loans, mortgages, etc. Having a healthy mix shows you can manage different types of financial obligation
5. New credit inquiries: How many times have you applied for credit recently? If you frequently apply, this shows a red  flag, which in turn drops your credit score

What does a no credit report file mean?

A no credit report file means a person has no credit history on record with credit bureaus. Learn more in this article: What is a no-credit-report file?


    • Related Articles

    • Completing your online rental application

      The rental application form is sent to you by the landlord or agent. Filling the rental application form involves a three-step process which includes: Rent specifics, Rental application, and Tenalet screening. Before you begin You should have already ...

    • What's included in a credit report?

      A credit report is a document that shows the applicant's borrowing history- basically, how they have handled debts and bills in the past. This tells you if they are good at paying on time or if they have a habit of missing payments. More importantly, ...

    • How to read a tenant screening report

      The Tenalet screening report provides all the information you need to make an informed decision about an applicant. It is generated the same day the application is submitted. When an applicant completes screening, you receive a PDF report with these ...

    • What do landlords see in my credit report?

      Your credit report contains more than just your credit score. Landlords want to see if you're responsible with borrowed money and financial obligations. Because if you pay your debt on time, you'll probably pay rent on time too. What landlords see: ...

    • What’s included in a standard rental application report?

      This is where you get the complete story about who wants to rent your house. It contains broader information about the applicant, including their work status, employment details, salary, identity, and other important details. Below is an example of a ...