Yes, many landlords and property management companies use FICO Score 8 as it is a widely available and standard version provided by credit screening services. While FICO 8 is common, especially among larger corporate landlords, some may use FICO 9, older versions (like FICO 5 or 4), or VantageScore.
Most landlords use your FICO Score, typically FICO Score 8, which ranges from 300 to 850. Some may rely on VantageScore, which often differs slightly. It's best to ask which scoring model a landlord uses when applying.
FICO 8 and 9 are commonly used for student loans, personal loans, medical loans credit card lines and auto loans. There are industry-specific FICO versions as well, including for auto loans and credit cards.
Many landlords consider a credit score of 600 or higher as acceptable, but requirements can vary widely depending on the landlord, property type and location. Understanding where your credit score generally falls on a scale can help you anticipate whether your rental application may be approved.
For other types of credit such as personal loans, student loans, and retail credit, you'll likely want to know your FICO® Score 8, the score most widely used by lenders.
Basically, "credit score" and "FICO score" are all referring to the same thing. A FICO score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
The result is that there are multiple FICO Score versions available, in addition to the most widely used version, FICO Score 8.
Landlords use credit scores to help them assess the risk of tenants being able to pay rent on time. A strong credit score can increase your rental chances and even allow for lower security deposits.
Most large property management companies require a credit check as part of their application process. However, some individual landlords, who own one or a couple of rental properties, might let you rent without established credit. Generally, these individual landlords will still ask you to prove income stability.
The majority of credit providers appear to use a single credit bureau and most often that bureau is Equifax. The ACCC also found that even where the large credit providers contract with multiple bureaux, some see Equifax as the primary bureau and utilise Experian and illion as a secondary data source.
Most apartments check Experian, Equifax, or TransUnion-Experian is most common-but landlords may pull just one or use a screening service. They focus on payment history, debt levels, and red flags like evictions; review all three reports beforehand to fix errors.
Many landlords will work with you and consider your application if you can show proof of stable income and employment, provide excellent references, or put down a larger deposit. Some renters also utilize a rent reporting service, which can help improve their credit by making on-time rent payments.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
For example, a landlord who asks for 3 months' bank statements for renting wants to see steady deposits like paychecks rather than irregular or absent income. This helps landlords confirm if you have a consistent cash flow to pay rent on time.
FICO® Score 8, created by the Fair Isaac Corporation (FICO), is one of the most popular scoring models in use today, along with other industry-specific versions. In fact, 90% of top lenders use FICO® Credit Scores.
Many factors impact your FICO score including how much credit you use, how long you've had credit, the type of credit accounts, and how many hard inquiries you have on your credit report. Managing these factors responsibly can contribute to an improved FICO score over time.
FICO® Scores are used by 90% of top lenders. There are lots of "credit scores" offered to consumers, so it's important to understand which score you're getting and how much it is used, or not used, by lenders – and it's more important than ever to make sure you know your FICO® Scores.