Yes, you can get housing with low credit, but you will pay more and face stricter requirements

A low credit score does not lock you out of renting or buying a home. Landlords and lenders have different thresholds, and many will work with borrowers or tenants below 620 or even below 580. What changes is the cost: you may pay a higher interest rate on a mortgage, a larger security deposit for an apartment, or both. Some landlords will rent to you only if you have a co-signer or pay several months' rent upfront. The path forward depends on whether you are renting or buying, and on what caused your score to drop.

The good news is that credit scores are not permanent. Recent negative marks hurt you far more than old ones, so waiting six months to a year can meaningfully improve your chances. Even without waiting, you have concrete options: a co-signer, a larger down payment, or a written explanation of what happened can overcome a low score in both rental and purchase situations.

Key Takeaways

  • Rental landlords often accept tenants with credit scores below 620, though many require a larger security deposit or a co-signer.
  • Mortgage lenders have programs for borrowers with scores as low as 500 to 580, but interest rates and down payment requirements rise as your score falls.
  • Recent late payments, collections, or evictions hurt you more than older negative marks, so waiting six months to a year can meaningfully improve your chances.
  • Explaining what caused your credit problems in writing to a landlord or lender can overcome a low score if the reason was temporary and you have recovered.
  • A co-signer, larger down payment, or proof of stable income can offset a low credit score in both rental and purchase situations.

Renting with low credit

Most landlords run a credit check, but many will rent to someone with a low score if other factors look solid. A landlord cares most about whether you will pay rent on time, so they weigh your credit score alongside your income, employment history, and rental history. If you have been evicted or have recent collections, that is a bigger red flag than an old bankruptcy or a score that dropped from a one-time event.

Landlords who will work with low credit typically ask for one or more of these: a larger security deposit (sometimes double or triple the usual amount), first and last month's rent upfront, proof of income at least three times the monthly rent, or a co-signer with good credit. Some will accept a letter explaining what happened—a medical emergency, job loss, or identity theft—if you can show you have stabilized since then. A few landlords specialize in lower-credit tenants and advertise that openly; others straightforward do not screen as strictly. Asking directly whether they work with lower scores saves you process fees.

Buying a home with low credit

Mortgage lenders have programs for borrowers with credit scores as low as 500 to 580, though the terms are not the same as for borrowers with scores above 740. The Federal Housing Administration (FHA) insures mortgages for borrowers with scores as low as 580, and some lenders will go lower with compensating factors—a larger down payment, lower debt-to-income ratio, or substantial savings. Conventional loans typically require a score of at least 620, though some lenders will consider 580 to 619 if you have other strengths.

As your credit score drops, your interest rate rises. A borrower with a 760 score might get a 6.5% rate, while a borrower with a 620 score on the same loan might pay 7.2% or higher. Over a 30-year mortgage, that difference costs tens of thousands of dollars. Your down payment requirement also increases: FHA loans allow 3.5% down for borrowers with scores above 580, but some lenders require 10% or more for scores below that. You will also pay mortgage insurance (FHA insurance premium, or PMI on conventional loans), which adds to your monthly payment.

What hurts your credit score most when explore for housing

Recent negative marks carry far more weight than old ones. A late payment from last month will hurt you more than one from three years ago. An eviction or active collections account is a major obstacle, but a charge-off or judgment from five years back is less damaging. Landlords and lenders both use the recency rule: they assume you are more likely to repeat recent behavior than behavior from years ago.

If you have a recent eviction, you may still rent, but you will need to explain it and likely provide a co-signer or larger deposit. If you have an active collections account, pay it off or negotiate a settlement before explore for a mortgage; lenders often will not approve you while collections are open. Bankruptcy is serious but survivable—FHA loans are available two years after a Chapter 7 discharge and one year after a Chapter 13 if you have made all payments on time since filing.

Steps to improve your chances before explore

If you have time before you need to move or buy, waiting can help. Credit scores recover faster than many people expect. A single late payment drops off your score when ready but becomes less damaging after six months and much less damaging after two years. If you have multiple recent late payments, waiting a year or more before explore will meaningfully improve your odds and lower your interest rate.

While you wait, pay every bill on time, even if it is just the minimum. Dispute any errors on your credit report—you can request a free report from each of the three bureaus (Equifax, Experian, TransUnion) once per year at annualcreditreport.com. If you have collections accounts, call and negotiate a settlement or payment plan; some collectors will agree to remove the account from your report if you pay in full. Paying down credit card balances also helps, because lenders look at your credit utilization (how much of your available credit you are using). Keeping balances below 30% of your limit is ideal.

Using a co-signer or larger down payment

A co-signer is someone with good credit who agrees to be legally responsible for the debt if you do not pay. For rentals, a co-signer can offset a low credit score, recent eviction, or thin rental history. For mortgages, a co-signer allows you to may have access to for a loan you might not get alone, though the lender will still pull their credit and verify their income. The co-signer does not have to live in the home, but they are on the hook if you default.

If you cannot find a co-signer, a larger down payment can work instead. Putting down 10% or 15% instead of 3.5% shows a lender you have skin in the game and are less likely to walk away. For rentals, paying several months' rent upfront (if the landlord allows it) demonstrates financial stability and reduces the landlord's risk. Both options cost you money upfront but can open doors that would otherwise stay closed.

Writing a letter to explain your credit history

A brief, honest letter explaining what caused your credit problems can persuade a landlord or lender to overlook a low score. Keep it factual and short—one paragraph is enough. Explain what happened (medical debt, job loss, divorce), when it happened, and what you have done since to recover. If you have been on time with rent or other bills since the problem, say that. If you have paid off the debt or settled collections, mention it.

Do not make excuses or blame others, and do not over-explain. A landlord or lender has seen hundreds of these letters and can tell the difference between someone taking responsibility and someone deflecting. The goal is to show that the problem was temporary and specific, not a pattern, and that you have moved past it. Attach the letter to your process or bring it to the meeting.

Frequently Asked Questions

What credit score do I need to rent an apartment?

There is no single requirement—it varies by landlord. Some will rent to anyone with a score above 600; others accept scores below 550 if you have a co-signer or larger deposit. Ask the landlord directly what their minimum is before you explore. Many landlords care more about your income and rental history than your credit score.

Can I get a mortgage with a 550 credit score?

Some lenders will work with you at 550, but most require at least 580 for FHA loans and 620 for conventional loans. At 550, you would need compensating factors like a larger down payment, lower debt, or substantial savings. Call a few lenders to ask what they can do; requirements vary widely.

How long does it take for a late payment to stop hurting my credit?

A late payment stops being the main factor in your score after about six months and becomes much less damaging after two years. It stays on your report for seven years but has less and less impact over time. If you have multiple recent late payments, waiting a year before explore for housing will improve your odds significantly.

Will paying off collections help me get approved for a mortgage?

Yes. Lenders prefer to see collections paid off before they approve you. Paying in full or negotiating a settlement removes the active risk. Some collectors will agree to remove the account from your report entirely if you pay, which helps your score even more.

Can a landlord reject me just because of my credit score?

Legally, a landlord can consider credit as one factor, but they cannot discriminate based on protected characteristics like race, religion, or disability. If a landlord rejects you, ask why in writing. If the reason seems pretextual or discriminatory, you may have a fair housing claim worth discussing with a local housing authority or attorney.