Renting a home in the US: applying, being screened, and having no credit

Finding somewhere to live is the hardest thing about the first few months in the US, and it is not about money. Newcomers who can comfortably afford the rent still get turned down, because an American landlord is not looking at what is in your pocket. They are looking at a paper record of you, and you do not have one yet.

This guide covers the first half of renting: viewing, applying, being screened, and signing. For the second half, everything after you move in, read tenant rights.

Have your documents ready before you view#

Good rentals go fast in the US. The person who can hand over a complete application that same day usually beats the person who has to go home and find paperwork. Put a set together and photograph it so it lives on your phone:

• Photo ID. A passport works
• Proof of income: recent pay stubs, or a letter from your employer
• Bank details, or statements for the last few months
• The name and phone number of a previous landlord, if you have rented before
• Your Social Security number or ITIN, if you have one

Watch for scam listings#

Rental listings attract a lot of fraud, and newcomers are the target, because they are in a hurry and do not yet know how things normally work here. The FTC lists these warning signs:

• Pressure to decide fast. The FTC's advice is direct: if anyone pressures you to make a decision quickly, walk away.
• Only wire transfers, gift cards or cryptocurrency accepted. This is a reliable sign of a scam. Paying that way is the same as sending cash, and once it is sent you probably cannot get it back.
• You cannot see inside. The person claims to be out of the country, or finds reasons you cannot view the property.
• A price well below other places in the same area.
• Sensitive details requested too early. A landlord does not need your Social Security number or your credit score before you have agreed to rent.

The application and the application fee#

Most landlords ask you to fill in an application and pay a fee. The fee covers what they pay to pull a report on you, and it is usually not refundable, even when they turn you down.

Before you pay it, ask three questions:

1. Is this unit genuinely still available, or is another application already in
2. How much is the fee, and is any of it refundable
3. If I am turned down, will you tell me why

The third question matters more than it sounds, and the next section explains why.

The tenant screening report#

When you apply, a landlord usually buys a report about you from a company that does nothing else. It is called a tenant screening report.

What is in it#

According to the CFPB, one may contain any or all of the following: credit reports, rental history including eviction actions and lawsuits, employment verification, criminal history, sex offender registries, a national terrorist watchlist, and a risk score or recommendation based on criteria the landlord chose.

Inaccurate or outdated information in one of these reports can seriously interfere with your ability to find housing. It happens more often than people expect.

If you are turned down, they have to tell you#

This is the part most people do not know. If a landlord turns you down because of what is in that report, the law requires them to notify you. That notice has to give you the name, address and phone number of the company that produced the report, tell you about your right to a free copy if you ask within 60 days, and tell you about your right to dispute anything inaccurate.

And the most useful part: an outright refusal is not the only thing that counts. The CFPB is explicit that these count too:

• Requiring a co-signer on the lease
• Requiring a larger deposit, or a higher rent than other applicants

So if a landlord says "yes, but you will need to pay double the deposit", you still have the right to know which report drove that decision.

Fixing what is wrong#

You have the right to dispute errors and have them corrected where the information is inaccurate or out of date. The screening or credit reporting company generally has 30 days to investigate, in some cases 45, and some states set shorter deadlines.

Dispute it in both places: with the company that produced the report, and with whoever supplied the wrong information to them. If nobody will fix it, file a complaint with the CFPB, or call (855) 411-2372.

When you have no US credit history#

Almost every newcomer lands here. You do not have bad credit, you have no credit at all, and a lot of scoring systems read "nothing" almost the same way they read "bad".

There is no way to build a credit history in a week. But there are routes around it that landlords commonly accept:

• Stronger proof of income. Many landlords want to see monthly income of roughly three times the rent. Bring pay stubs and an employer letter.
• A co-signer. Someone with good US credit signs alongside you. Remember that if you cannot pay, they have to.
• Paying several months up front, or a larger deposit. How much deposit a landlord may hold is set by state law, not by whatever they feel like asking. Read tenant rights before you agree.
• Small independent landlords. Someone with one or two units is often more flexible than a large management company, because they decide themselves rather than following scoring software.

A landlord cannot refuse you for being Vietnamese#

The Fair Housing Act prohibits housing discrimination on the basis of race or colour, religion, sex, national origin, familial status and disability.

National origin is the one to know. A landlord cannot refuse you, or set different terms for you than for someone else, simply because you were born in another country or because of the way you speak.

The Department of Justice also notes that housing providers sometimes disguise discrimination by giving false information about availability, meaning they tell you nothing is free when something is.

If you think you have been discriminated against, write it down straight away: the date, the name of the person you dealt with, what they said, and keep any texts or emails.

Then report it. There are three routes, easiest first:

• Call HUD on (800) 669-9777, TTY 711. If your English is limited, calling is easier than a form, because you are talking to a person.
• File online through HUD's complaint page.
• See the Justice Department Civil Rights Division's housing page. It is published in Vietnamese; change the language at the top.

Before you sign the lease#

A US lease is a binding document, and it is hard to get out of once signed. Before you sign:

• Read all of it, including the small print. If the English is too hard, ask someone to translate. There is no shame in that.
• Ask how long the term is, and what the penalty is for leaving early
• Ask what the rent includes: electricity, water, rubbish collection, parking
• Walk through and record everything already damaged, photograph it with the date visible, and give the landlord a copy. This is what protects your deposit when you move out.
• Keep a copy of the lease signed by both parties

What to do next#

1. Gather the document set from the top of this guide and photograph it
2. Before handing money to anyone, run back through the scam warning signs
3. If you are turned down, ask in writing whether a screening report was the reason, then request your free copy within 60 days
4. Read tenant rights before you move in, not after