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How Medical Debt and Collections Affect Apartment Approval

Worried medical debt or collections will hurt your apartment approval? First, pull your own reports and see what's on them. Then send us what you find. We track how each community treats medical collections, and we’ll tell you where a short explanation may help.

Renter organizing medical bills and paperwork at a desk

The short answer

Some communities count medical collections less.

We’re the No Credit Check Apartment Team, a licensed real estate team brokered by Spirit Real Estate Group, LLC (TREC #562021). Between us we have more than 20 years in real estate, working with property managers across Dallas, Fort Worth, Houston, Austin and San Antonio. We point renters with credit, eviction and record problems to communities whose criteria may fit them, and each property makes its own rental decision.

Graphic showing how screening treats medical debt differently from rental debt

What that means for you

We'll point you to communities whose posted criteria go easier on medical debt.

How Texas communities handle it

Texas property managers screen through a handful of companies, including TransUnion SmartMove, RealPage LeasingDesk, and AppFolio. Some check rent payment data from Experian RentBureau, and old apartment balances often show up through collection agencies like NCAC. Each one pulls up different information, and each management company reads it differently.

A denied application usually costs $50 to $75, and those fees stack up fast when you apply without knowing how a property screens.

For more on renting with collections on your credit, see our bad credit guide or the related guides below.

What to do next

Don't know where to apply, or tired of paying fees just to get turned down? Don’t guess. Send us your situation and we’ll point you to Texas communities worth a look. It’s free to you; communities pay our referral fee out of their advertising budgets.

Related reading: bad credit · what credit score do you need to rent in Texas?

FAQ

Does medical debt count against me for an apartment? +

Less than it used to. Paid medical collections and ones under $500 came off credit reports in 2022 and 2023, and new ones don't show for a year. Bigger unpaid ones still count. In July 2025 a federal court threw out the rule that would have removed them. Debt to a past landlord hurts more.

Should I explain my medical debt on the application? +

Yes. A short note about what happened helps. Attach a payment plan statement or a letter showing your insurer is still processing the claim.

Can I still rent with collections? +

Many renters do, especially when the collections are medical and the income is steady.

Related guides

What Is a Risk Fee / Conditional Approval Fee?

A risk fee can get a lower score a second look at some communities. Expect a few hundred dollars for credit and more for an eviction or record, usually charged once on top of your deposit.

Can I Get an Apartment With a 500 Credit Score?

Some Texas communities with conditional approval consider a 500 credit score, sometimes with a risk fee. A 500 with no old rent owed gets a second look more often.

What Credit Score Do You Need to Rent an Apartment in Texas?

Many Texas communities set a 550 to 620 minimum, and many look at income and your whole application too. Some are flexible, and a risk fee can move the line.

Guarantor vs. Higher Deposit vs. Cosigner for Bad Credit

Guarantor, bigger deposit, or cosigner? We compare the cost, where each is accepted, and which screening problems each one may help with.

Want us to look at your situation?

Send us your screening issue and target city. We typically get back to you the same day to go over your form, and your community list usually takes 24 to 48 weekday hours. Weekend requests most likely hear from us Monday. Free.

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