Imagine two applicants submitting their paperwork in the same Manhattan building. One person has a credit score of 720 and is only required to pay one month's deposit, while the other has a score of 610 and is asked for a three-month deposit. The difference in their total initial costs amounts to two months' rent, which can be thousands of dollars in New York. Few examples illustrate better how a credit score can impact the initial financial burden more than the rent itself.

In the New York City rental market, management companies typically require a minimum credit score of around 650, and if the score falls below 620, it can be difficult to get approved without a guarantor. As of August 2026, the average rent for a one-bedroom in New York City is $4,493 per month (Zumper), significantly higher than the national average, which means landlords are understandably strict about tenants' ability to pay.

New York State limits the application screening fees that landlords can charge to the actual costs of background checks and credit checks or $20, whichever is lower. If an applicant submits their own credit report issued within the last 30 days, the landlord must waive the fee. The requirement to obtain consent for credit checks is also mandated by law, making it one of the more practical consumer protection provisions related to rental agreements in New York.

The most common solution when scores fall short is to use a guarantor. In New York, if a tenant does not meet the requirement of earning 40 times the monthly rent, the guarantor often needs to prove an income of 80 times the rent, which can put pressure on parents or relatives to have sufficiently high incomes. Some applicants are increasingly opting for rental guarantee insurance, such as The Guarantors or Insurent, which costs between 4.5% and 10% of the annual rent and often allows for a reduced one-month deposit.

The most fundamental way to reduce deposit burdens is to manage your credit score. Keeping credit card utilization below 30% and using services that report utility or communication payment histories can lead to noticeable score improvements within a few months. If you have a short credit history in the U.S. due to studying abroad or immigration, it may be worth considering services like Nova Credit to convert and submit your credit history from your home country.

Whether a guarantor or rental insurance is better depends on individual circumstances. A guarantor incurs no cost but requires disclosing the income and credit of parents or relatives, which can be a burden. Rental insurance costs between 4.5% and 10% of the annual rent each year, but it allows the applicant to complete the contract without involving family members. It's advisable to calculate how the two options differ within the same budget before making a choice.

Even within New York State, the intensity of screening can feel different when comparing Manhattan to outer boroughs. Managed buildings in Manhattan tend to apply score and income criteria mechanically, while smaller buildings in Brooklyn or Queens may allow for more landlord discretion. If a credit score is somewhat low but the rental history is long and stable, there may be more room for negotiation in the outer boroughs.

For Korean-American families managing assets between Korea and the U.S., it can be easy to approach credit score management with a mindset similar to managing credit ratings in Korea. However, it's important to note that the scoring methods and reflection speeds differ. U.S. credit scores are recalculated monthly, with payment habits from the last 6 months to a year having a significant impact, so if you are planning to move, it's practical to start adjusting your credit card usage habits at least six months in advance.

This article is not investment or legal advice, and rental terms and fee regulations may vary by building and borough, so consulting a professional before signing a contract is recommended.