Published by REALTOR.com | January 27, 2025
Credit scores aren’t just important for homebuyers—they also have a huge impact on the rental market.
Despite seeing an increase in affordable housing options in Atlanta, residents are still finding themselves locked out of the housing market.
Atlanta resident Jackeine Wilson pays $1,200 a month to live in a hotel, about the equivalent of the cost of monthly rent in the city. Though she can afford the amount, Wilson has been unable to sign a lease because of her poor credit score.
In 2022, Atlanta Mayor Andre Dickens set a goal to create 20,000 new housing units by 2030, 60% of which would be set aside for households making $60,000 or less annually. The city has already constructed 8,000 new units, but an investigation from local NBC affiliate 11 Alive found that low-income earners are prevented from taking advantage of newly created housing because of their low or nonexistent credit scores.
Many of those most in need in the city don’t have enough credit history, or have bad credit, and aren’t sure of the steps to take to improve their credit scores, investigative reporter Rebecca Lindstrom found.
“I would say anything really under 600 is tough. It’s tough to qualify for things,” Kate Bulger with Money Management International told Lindstrom. “When you are applying for a lease or you’re applying for a mortgage, that credit score is a big piece of the deciding factor for most lenders and most landlords for whether or not you’re able to qualify.”
Credit scores create a barrier to renting
It’s hard to believe, but credit scores as we know them today are a relatively new construct. FICO credit scores only became standardized in 1989.
Credit scores are required for all types of loans—mortgage, car, or business. Credit is gauged on a scale from 300 to 850 and can be affected by the amount of debt you carry and the ratio of debt to credit you hold. Your history of paying bills and credit cards responsibly and on time also counts.
There’s no legal requirement that landlords look at credit scores, but most landlords do typically require a credit score of at least 670—in the “good” range to rent.
