Your Credit Score Could Decide Where You Live — Here’s Why

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There are many factors that can determine where you live. Climate, walkability and accessibility all play a role. If you like a fast-paced environment, you might be well-suited for city life. However, if you’re keen on easy parking, the suburbs or countryside might be calling you. But there’s another major factor that can influence where you call home — one that often gets overlooked: your credit score.

Landlords and lenders closely examine your credit score when you apply for apartments or mortgages. I wondered how credit scores influence a person’s ability to live where they want. To learn more, I asked MoneyLion AI for insights. 

The AI offered more than a quick explanation. It also shared smart tips for improving your credit score and, in turn, expanding your housing options.

The Impact of Your Credit Score on Housing Options 

The AI didn’t sugarcoat it: “Your credit score can significantly impact where you live, as it influences rental applications, mortgage rates and insurance premiums,” it said. “A higher score may secure better housing options and lower costs.” 

It also outlined several straightforward ways to strengthen your score: 

• Pay bills on time 
• Reduce credit card balances 
• Avoid opening too many new accounts at once 
• Regularly check your credit report for errors 

Following these steps, the AI explained, can help improve your financial standing — and potentially open doors to the home or neighborhood you really want.

Yes, Landlords Are Looking at Your Credit Score 

I knew banks and mortgage lenders scrutinize your credit, but what about the average landlord at an apartment complex or private rental? Surely they couldn’t be as concerned. Oh, but they can — and they are. 

“When applying for an apartment, landlords often review your credit score to assess your reliability as a tenant,” MoneyLion AI said.

To help you prepare, it shared additional guidance: 

• Pay bills on time: Set up automatic payments to never miss a due date. 
• Keep credit utilization low: Use less than 30% of your available credit. 
• Maintain old accounts: Keep older credit accounts open to build a longer credit history. 
• Limit new credit applications: Only apply for credit when necessary. 
• Monitor your credit reports: Check for errors and dispute inaccuracies. 

“Improving your credit can enhance your chances of securing a rental,” the AI added.

How To Secure a Competitive Mortgage Rate 

Suppose you’re ready to buy your first home and want to qualify for a reasonable interest rate. According to MoneyLion AI, a credit score of at least 661 is the benchmark for “decent” mortgage terms. Naturally, the higher your score, the better your rate and the lower your long-term costs.

So how can you maximize your score for the best mortgage rate? MoneyLion AI offered these steps: 

• Check your credit report: Ensure accuracy and dispute any errors. 
• Boost payment history: Pay bills on time to enhance your score. 
• Manage credit utilization: Keep balances below 30% of your credit limits. 
• Diversify credit types: Mix credit accounts responsibly. 
• Limit new applications: Avoid opening multiple accounts at once. 

“Improving your credit score can lead to significant savings on your mortgage,” the AI explained. Even a modest bump in your credit score could save thousands over the life of your loan.

How To Get a Place Even With a Low Credit Score 

Ideally, you’d have time to improve your credit before searching for your perfect home. But life doesn’t always wait for your FICO score to improve. I asked MoneyLion AI what to do if I needed a new place despite a mediocre or poor credit score. 

“Don’t let a less-than-perfect credit score hold you back from renting or buying a home,” it said. The AI again reminded me of tips for improving my credit: check reports for errors, pay bills on time, keep credit utilization low and maintain a long credit history. 

It also suggested ways to reassure potential landlords or lenders, such as providing alternative verification like proof of income or employment. 

MoneyLion AI recommended exploring credit-builder loans or other programs to help establish or improve credit. 

“Remember, it may take time and effort, but with a solid plan and responsible financial habits, you can overcome credit score challenges and achieve your goals,” the AI said. 

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