It’s no secret that credit scores are far from perfect. In fact, they can be downright archaic—failing to account for modern economic realities and often penalizing people for past missteps rather than present stability.

Still, at Nomad, we know that credit scores remain one of the most reliable predictors of rent payment performance. They’re a simple metric with a surprisingly strong correlation to whether a tenant will reliably pay rent.

So how does this play out in the real world? Let’s take a look at the data across Nomad’s nationwide portfolio:

• Credit Score < 650: Nomad owners see an average loss rate of 1.57% on rent by the time a tenant moves out

• Multiple of Increase: That’s an 8x higher  loss rate compared to tenants with stronger credit scores.

In other words, while a lower credit score doesn’t guarantee non-payment, it does increase the risk of rent loss significantly.

Why Credit Scores Still Matter

Credit scores have become a fixture in the rental world because they offer a standardized way to assess a tenant’s likelihood of paying rent on time. While we recognize their flaws, the numbers don’t lie—landlords see far more consistent rent payments from tenants with higher credit scores.

At Nomad, we understand that the best tenant screening processes take credit scores into account—but don’t stop there. Our comprehensive screening includes income verification, rental history, and background checks to give you the fullest picture possible of a prospective tenant.

The Nomad Difference: Guaranteed Rent, Regardless

Even the best data and screening can’t eliminate every risk. That’s where our Guaranteed Rent program comes in. We know that the peace of mind you get from guaranteed payments is just as important as the insights from data.

Nomad’s Guaranteed Rent program ensures that you’ll get your full rent each month, even if your tenant misses a payment. It’s a safeguard that combines cutting-edge data analysis with practical protection—so you can lease with confidence, no matter what.