Do I Need a Credit Score to Rent an Apartment?

If you’re on the hunt for a new apartment, you’re probably calculating how much rent you can afford. But beyond the monthly rent, there’s another key factor that can determine whether you secure that dream apartment: your credit score.

In many larger apartment buildings and homes managed by property management companies, a credit score is often required. It’s a tool that landlords use to assess your financial reliability. For smaller property owners, credit scores are equally important as they mitigate the risk of renting to unreliable tenants.

For first-time renters, your credit score holds even more weight. Without a rental history, your credit score can be a critical factor in convincing landlords that you’re a trustworthy tenant.

Why Does My Credit Score Matter to Property Managers?

You might be wondering why a credit score is so important if you’re not taking out a loan to pay for your rent. Renting is a financial agreement, and from the landlord’s perspective, it comes with risks. They need assurance that you will:

• Pay rent on time

• Keep the property in good condition

• Handle utility payments responsibly

When you apply for an apartment, landlords often perform a “hard pull” on your credit report, which gives them a detailed view of your financial history, including any late payments or significant debts. They may have a minimum credit score requirement that varies depending on the location and the type of property. Generally, a credit score in the mid-600s is sufficient, but higher scores improve your chances, especially in competitive markets.

If you’re applying with a roommate, keep in mind that their credit score will also be considered. A strong score from one applicant can sometimes balance out a weaker score from another, but it’s essential to be aware of how both of your scores will impact the application.

Does Paying Rent Help Build My Credit?

This is a tricky question. Unfortunately, in most cases, the answer is ‘no.’ While you may make your rent payments on time every month, most landlords do not report these payments to credit bureaus. As a result, paying rent doesn’t typically contribute to building your credit score. Currently, only about 10% of renters in Canada are able to build credit through their on-time rent payments.

At Kaviar, we believe that responsible rent payments should be rewarded. That’s why we’ve made it our mission to ensure that your rent payments count towards your credit score. When you pay your rent through Kaviar, we report your on-time payments to major credit bureaus, helping you build or improve your credit score—no additional effort required​.

Will My Credit Score Suffer If I Can’t Pay My Rent?

If you’re unable to make your rent payments, your landlord will usually reach out to you first to discuss a payment plan. Initially, missed payments aren’t reflected on your credit report. However, if you continue to miss payments and are eventually evicted, the debt could be sent to collections, which would negatively impact your credit score.

At Kaviar, we only report on-time payments to the credit bureaus. This means that if you’re ever late on a payment, it won’t hurt your credit score—protecting you from further financial stress while you work to get back on track​.

How Credit Affects Your Future Housing Opportunities

A healthy credit score is crucial not just for renting your next apartment but for other significant financial milestones, like buying a home. While rent payments haven’t traditionally helped build credit, times are changing. Major mortgage lenders, such as Fannie Mae and Freddie Mac, now consider on-time rent payments when evaluating mortgage applications for first-time homebuyers.

If you love where you’re living and want your rent payments to contribute to your financial future, talk to your property owner about signing up for Kaviar. With Kaviar, you’ll see the benefits of credit-building through your rent payments at no additional cost to you​.

Learn More About Building Credit with Kaviar

Interested in maximizing the financial benefits of your rent payments? Explore our Credit Education resources to learn how Kaviar can help you build credit and achieve your financial goals.