When you apply to rent an apartment, the landlord or property manager may do a credit check as part of your application review. The landlord typically conducts a hard pull or inquiry. In this case, the credit reporting agency will note the check on your credit report. A hard inquiry usually takes about five points off your credit score, according to NerdWallet.
Apartment Credit Check Implications
While a single credit check won't ruin your score, shopping around for an apartment can have a cumulative effect. Five applications and hard inquiries could take as much as 25 points off your score. It normally takes about six months of on-time payments to recover the lost points. If you plan to get a car or home sometime in the near future, this factor can be problematic.
- NerdWallet: Renter’s Remorse: How Apartment Shopping Can Ruin Your Credit Score
- Consumer Finance Protection Bureau: Key Dimensions and Processes in the U.S. Credit Reporting System
- Discover: Most People Say They Are Aware of Their Credit Standing, but Far Fewer Check Their Credit Score More Than Once a Year
Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.