When your credit score is 650 or 580, the first thing that changes is the deposit amount. If your score exceeds the standard, you can sign a lease for one month's rent, but if it falls short, you may be asked for two or even three months' rent. The first concern is likely to be, 'How much more will I have to pay with my score?'

Philadelphia is a city where rental prices vary significantly by neighborhood. In the city center and college areas, competition is fierce, and landlords closely examine credit scores and income verification, while properties in the Northeast or Southwest tend to have more flexible screening. Depending on which neighborhood you are looking at, the required documentation can vary.

The common standard that management companies in Philadelphia look for is between 600 and 650 points. According to columbiaphilly.com, a score above 650 puts you in a much better position, and competitive properties or newly built complexes may require a score of over 700.

To summarize the deposit amounts by score range: if you have a score above 650, most leases will conclude with one month's rent, while those between 600 and 649 may be asked for 1.5 months' rent depending on the management company. If your score falls below 600, it is common for deposits to increase to two or three months' rent.

On the other hand, having a score below 600 does not completely block your options. More management companies are now looking at whether there have been no late payments in the past 18 months and whether income is stable. This trend indicates that decisions are not solely based on credit scores. Local Philadelphia newspapers have pointed out that credit scores and background checks can act as barriers for low-income tenants, leading management companies to gradually refine their screening criteria.

Rental costs also need to be considered to complete the calculations. According to RentCafe, the average rent for a one-bedroom in Philadelphia is $1,545. Applying the income screening standard (around three times the rent), you would need a pre-tax monthly income of about $4,635 to pass the standard conditions.

So, what are the ways to reduce the burden of the deposit? The most commonly used method is to have a cosigner, followed by enrolling in rental guarantee insurance like The Guarantors or Insurent. The cost of guarantee insurance typically ranges from 4.5% to 10% of the annual rent, which is often less burdensome than two or three months' rent as a deposit. If it's difficult to gather a large sum at once, it is advisable to consider these two options together.

It's also good to be aware of Pennsylvania state laws. The deposit for the first year cannot exceed two months' rent, and from the second year, it decreases to one month's rent. Recently, there have been discussions about legislation that would allow for installment payments or guarantee products instead of a deposit, which may reduce the burden of a large sum in the future.

If you are moving to a school district that many Korean families frequent, be sure to check the ratings on GreatSchools or Niche in addition to the credit screening. School district boundaries change frequently, so it's safe to verify the assigned school for the address before signing a lease. If you have just arrived from Korea and have no credit history, consider using Nova Credit to convert and submit your overseas credit history. If you are moving from another state to Philadelphia, keep in mind that the property tax and rental income tax systems may differ from your previous residence.

Credit scores can change significantly with just a few months of attention. By consistently paying rent and utilities on time and keeping your credit utilization below 30%, you can greatly reduce the burden of the deposit.

This information is not investment or legal advice, and it is recommended to consult with a professional before finalizing any contracts.