When preparing a rental application, many people are surprised by how many documents they need to submit. While it's expected to provide identification, proof of employment, and recent pay stubs, it's not uncommon to be halted by the requirement for a credit report from the management company. For families preparing to move to Fargo, North Dakota, it's important to first understand the role of credit scores in this list of required documents.

The rental market in Fargo is relatively accommodating compared to other major cities. The average rent for a one-bedroom apartment ranges from $950 to $975 (based on Apartments.com and ApartmentAdvisor data from 2026). Given that this is about half the price of similar apartments in larger cities, many management companies apply credit score requirements more flexibly.

However, just because the area is accommodating doesn't mean there are no screening processes. Nationally accepted standards indicate that most management companies set a minimum credit score of 620 to 650, and to reduce the deposit or receive better terms, a score of 680 to 700 is recommended (according to Experian and Rent.com credit guides). It is realistic to expect that Fargo follows this trend closely. In the past, rental screenings often only required income verification, but now, many management companies have adopted the standard procedure of including credit reports.

There are also other factors considered alongside credit scores. They look at whether the income is at least three times the monthly rent, if there are any issues with previous rental history, and if there are any red flags in the background check (as noted in the Apartments.com renting guide). A low score alone does not automatically disqualify an applicant; if other factors are strong, there may still be room for negotiation.

If the score falls short of the requirements, there are several alternatives to consider. Options include having a cosigner, increasing the deposit to two or three times the usual amount, or enrolling in rental guarantee insurance like The Guarantors or Insurent. The cost of guarantee insurance is typically reported to be between 4.5% and 10% of the annual rent (according to theguarantors.com and insurent.com). For international students or recent immigrants with a short credit history, exploring services like Nova Credit that convert international credit histories or offering several months' rent upfront can also be negotiation strategies.

The North Dakota Housing Finance Agency (ND Housing) operates support programs for households facing rental barriers, making it worthwhile to check if there are difficulties with credit or rental history (ndhfa.org). In the long term, checking your credit report before submitting an application and addressing any delinquent items is the most basic way to increase your chances of passing the screening.

When comparing Fargo with Moorhead, Minnesota, across the river, interesting differences emerge. Minnesota has income tax but relatively strong tenant protection laws, while North Dakota has lower tax rates but gives management companies more discretion in their screening criteria. Both areas have neighborhoods that overlap with the Fargo school district, so it's wise to verify the exact school district assignment at the address level when looking for rentals (referencing GreatSchools ratings, as school district boundaries can change frequently and should be rechecked before signing a lease).

For those looking to invest in Fargo properties based on rental income, a tenant's credit score becomes an important variable. To reduce vacancy periods, a flexible approach that considers income and rental history rather than setting excessively high screening criteria often leads to more stable rental income, as observed over time. However, this can vary depending on the type of property and market conditions, making it difficult to make definitive statements, and vacancy and delinquency risks should also be taken into account.

It's advisable to keep in mind that contract terms can vary based on credit score ranges, even with the same budget, when preparing documents. This article does not constitute investment or legal advice, and it is recommended to directly verify the specific screening criteria of the management company before entering into any agreements and consult with professionals if necessary.