Credit Scores... (by Tom [FL]) Nov 17, 2017 1:05 PM
Credit Scores... (by S i d [MO]) Nov 17, 2017 2:45 PM
Credit Scores... (by Tom [FL]) Nov 17, 2017 3:39 PM
Credit Scores... (by Landlord ofthe Flies [TX]) Nov 17, 2017 4:02 PM
Credit Scores... (by Oregon Woodsmoke [ID]) Nov 17, 2017 4:39 PM
Credit Scores... (by DJ [VA]) Nov 17, 2017 8:15 PM
Credit Scores... (by John [NY]) Nov 17, 2017 9:24 PM
Credit Scores... (by Tom [FL]) Nov 18, 2017 10:39 AM
Credit Scores... (by Ray-N-Pa [PA]) Nov 23, 2017 1:33 PM
Credit Scores... (by John... [MI]) Nov 23, 2017 3:00 PM
Credit Scores... (by John... [MI]) Nov 23, 2017 3:01 PM
Credit Scores... (by Mike [NY]) Nov 29, 2017 8:31 PM
Credit Scores... (by Jim in O C [CA]) Nov 29, 2017 8:54 PM
Credit Scores... (by Tom [FL]) Posted on: Nov 17, 2017 1:05 PM Message:
How much of a factor is a prospective tenants Credit Score in your decision to reject or accept as your tenant??? In 2010 Transunion Credit Score and Grade scale.
Score / Grade
990 - 900 / A
899 - 800 / B
799 - 700 / C
699 - 600 / D
599 - 501 / F
Do you have a cut-off point that you will not rent to a prospective tenant with a score below a certain number? In your rental market do you find most of your prospective tenants are 699 to 600 grade D? OR Score?Grade??? In the last several months one of the landlords on this site would not take anyone under a Grade B. That's an excellent score and many people in that Grade B most likely could buy a house but choose to rent. More power to the landlord that has set his or her criteria to that high standard of qualifications.
I have found that below a 600 credit score is usually a problem will happen sooner or later with a prospective tenant lower than this score.
There are a few landlords that do not use a credit score as their criteria and if this works out for you with your other set of criteria that's great.
Consider this you have a prospective tenant with a score of 700 - 601 Grade D and you have another prospective tenant with a score of 800 to 701 Grade C. WHY NOT? charge a rent based on credit score. Car loans base their interest rates on credit score why not use it as a tool to get more rent for your unit. Of course this being said your other criteria has been meet by the tenant. Do you have to follow these guidelines? Your criteria could be an increase of rent every 50 points. Of course under a certain number its a flat rejection.
It's amazing that some landlords do not use a credit report to help with tenant selection. Forget the credit score for a minute the credit report will help them to weed out poor money management prospective tenants. Some Landlords will take a prospect based on cash in hand includes first, last and security deposit and they have a JOB. That's it no other criteria in 99% of the time this Landlord will not see another dime from this prospective tenant. They may see a few months then its no more rent and damages to the unit. Or every month the Landlord is chasing the tenant for rent or part of the rent, then finally no rent. In most cases the rental unit is extremely dated and qualified tenants will walk away from this unit or never look at the unit.
Phone screening, Showing Screening? Rental Application? Application Fee? Credit Report? Credit Score? Criminal Record? Any Evictions? Call Previous landlords? Call Present Landlords? Call Utility Companies Water and Sewage? Check out present housing condition?...
Check out the car to see if all their possessions are in the car and they are ready to move in NOW!!! NEXT prospect!!!
Happy Landlording!!! Make a Boat Load of Money!!! --99.56.xx.xx |
Credit Scores... (by S i d [MO]) Posted on: Nov 17, 2017 2:45 PM Message:
Credit scores are meaningless. What's on the report is what counts. You need to know WHY the score is what it is. Yes, you do need to run a credit bureau so you can see what their minimum monthly obligations are, to verify no fraud alerts, and that addresses all match. But otherwise, those scores are worth almost nothing. Here's why I say that:
I graduate college in 1999. No job or paycheck other than my 1 weekend-a-month National Guard check ($250?). No steady work history other than part-time jobs during the school year and 3/4-time over the summer. I had a teaching contract that started in 3 months: my first full pay check would not arrive until Oct 1st! I'd never had any student loans, never had a phone or a utility bill in my name, but because I had a dinky little Discover card with a $500 limit that I used for groceries and gasoline I somehow had a credit score in the 720s. That was enough to qualify me for a mortgage on a house with zero down. Go figure. --173.19.xx.xxx |
Credit Scores... (by Tom [FL]) Posted on: Nov 17, 2017 3:39 PM Message:
Hey Sid that dinky little Discover card was the start of your credit and your credit score. Dinky or not it worked for you and helped to establish your credit history.
SID, I understand your point of Credit Score. However, the credit score is just another tool to help a Landlord to use as a positive or negative to reject or accept a prospective tenant. Absolutely the credit report is extremely important. There were many times I rejected a tenant on the credit report due to delinquent account, charge offs and collections galore on the prospective tenants credit report.
Also the credit score could work in a Landlords favor to increase rent for a lower score prospective tenant. The car loan financial industry does it on a daily basis.
The interest rates are higher as your credit score goes lower. Again its just another tool in the resources available to Landlords.
It's amazing how many people do not care their credit is low or that a Landlords reported them to a credit bureau due to delinquent account/money judgement. They don't realize how much more they are paying for a loan or are not approved for a credit card due to a poor credit history.
--99.56.xx.xx |
Credit Scores... (by Landlord ofthe Flies [TX]) Posted on: Nov 17, 2017 4:02 PM Message:
My start to credit was even better. I was a cardholder on my mother's AMEX Gold card account starting at age 18. She got it for me when I went to college in case of emergency. Luckily no emergencies came up so I never used it. However it created a great start to my credit. Thinking of putting my kids on my account, but I may not give them the card. --108.69.xxx.xxx |
Credit Scores... (by Oregon Woodsmoke [ID]) Posted on: Nov 17, 2017 4:39 PM Message:
I've looked at enough credit reports to know that the actual numerical score is pretty worthless. What I look at is what is on the report, what is owed, to whom is it owed, what is paid, what isn't paid.
I'm not interested in taking more rent to rent to someone who isn't qualified. If they aren't qualified, I don't want them at any price. --174.216.xx.xxx |
Credit Scores... (by DJ [VA]) Posted on: Nov 17, 2017 8:15 PM Message:
Maximum FICO score is 850, so your letter grades are a bit off.
I recently approved an application from someone with a score in the 400s.
I prefer to read the entire credit report myself & "score" the applicant according to what I consider the most important factors. Also, The weight of importance I place on different factors varies depending on what property they are applying for. --68.105.xxx.xxx |
Credit Scores... (by John [NY]) Posted on: Nov 17, 2017 9:24 PM Message:
I never used credit score. Most of my applicants are in the 400-500 range, and almost never get anyone who applies that has a 600 score or higher. Its the area you are renting in. Inner city usually if they rent, they don't have good credit. Better indicator would be the number of evictions or arrests to decide if tenant is good or not. I haven't found a good source that tracks evictions though, only arrests published in the last 3 years. Perhaps if the tenant owed money, and the landlord filed the judgement, the eviction would show on their credit report. Not enough information is available to inner city landlords to judge the poor applicants I see. --108.176.xxx.xxx |
Credit Scores... (by Tom [FL]) Posted on: Nov 18, 2017 10:39 AM Message:
Wow John of NY, Your rental area of the inner city applicants 400- 500. You have a set of criteria that has worked for you in your rental market. Criminal record, credit report and credit score are important tools for you. I wonder how many landlords file for judgement due to evictions in your area, very few. I wonder how many of the landlords in your area are chasing rent because they rented to the next prospective tenant that walk in the door.
Best of Success... --99.56.xx.xx |
Credit Scores... (by Ray-N-Pa [PA]) Posted on: Nov 23, 2017 1:33 PM Message:
Above a 620 I offer a move in special - only 1/2 month's rent as a deposit.
Above a 580 to 619 - one month's deposit
Scores between 520-579 - I accept but require them to pay a surplus deposit amount that gets refunded after six months of on time payments.
Under 519 - I really am not that interested in. Two months deposit is the most we can charge in Pa....and that is only for the first year
I am more interested in knowing what major life events are occurring in my tenants life. A divorce can mean a drop in credit score of 80-100 points. But if the new score is now 580...they are a keeper --24.101.xxx.xxx |
Credit Scores... (by John... [MI]) Posted on: Nov 23, 2017 3:00 PM Message:
As DJ said, that grading scale doesn't even make sense for the most commonly used scores from TransUnion since those max out at 850.
People need to remember that there are literally DOZENS of different credit scoring systems. You need to know what you are looking at before you base anything on the score. For example, the Vantage 2.0 scale goes to 990. But the Vantage 3.0 scale goes to 850. If someone has a score of "650" -- that's "fair" on Vantage 3, but "good" on Vantage 2.
Most of the ones that we get as LLs are on a scale that goes to 850. So, using the "grading scale" listed here would make no sense at all.
All that being said, like Sid said, I don't consider the score much. I read the actual report to see what is on it.
- John...
--216.176.x.xx |
Credit Scores... (by John... [MI]) Posted on: Nov 23, 2017 3:01 PM Message:
Minor correction: I got those backwards in my example. A 650 is better on Vantage 3 (out of 850) than Vantage 2 (out of 990).
- John...
--216.176.x.xx |
Credit Scores... (by Mike [NY]) Posted on: Nov 29, 2017 8:31 PM Message:
I don't take soo much stock in the actual credit score. Instead I focus on the contents of the report, such as payment history - negative accts, accts in good standing, collections, late payments, etc. If I have someone with a 650 credit score and excellent on time payments, no collections, I would definitely consider them.
There are soo many factors that go into calculating a credit score that it doesn't show the full picture. If you have a young professional recently out of college, they are not going to have an established credit history - they are just starting out - so length of time accounts have been open affect the credit score. I would not ding them for that. --74.74.xx.xxx |
Credit Scores... (by Jim in O C [CA]) Posted on: Nov 29, 2017 8:54 PM Message:
I glance at the credit score but it is a very low component of my analysis. What items are In the score and what length of time is what I’m more concerned with. My own score is a low 700’d with no late payments in 30 years and my SFH’s in Taxifornia have been paid off for 20 years. GO FIGURE! --75.22.xx.xx |
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