700 credit score but has 3 judements?? VS 500 credit score and late payments on individual accounts but blames divorce.

[Jennifer H.]

Today I was so happy to get a tenant who got a score of 700 and smart move told me to ACCEPT her! I was thinking FINALLY this is over! But then after reviewing her credit closer I saw she has

• 3 judgements and 1 of them is from an apartment complex in Town on 2009.
• 2 collections in 2009 and 2013. Both paid off/settled.
• Do see something weird her credit report came back with two POBox addresses. Not sure why she would have that.
• DTI is 39%.
• Seems to have a ton of student loan debt outstanding.
• Works two jobs.
• Reason to move: broke up with fiance her and daughter moving out.

Then I got this other lady:

• 510 credit score. She says it's from her divorce in 2011 however in 2012 and 2013 I see late payments of 30 and 60 days on her credit for her joint car payment on an account that she listed on her application that she pays / month.
• She also has collections on her credit that she said stems from her divorce. I see 5 creditors going after her
• She seemed nice. Her friend lives in the neighborhood and told her about the place and it would just be her living there. Kids are grown.
• Says she has rented for 2 years and had has never paid rent late and lives a quiet life.
• Her income seems more borderline like she'd be pretty tight paying her bills. We calculated DTI like 50%. But she said she was getting a raise in Jan.
• Gut feel seems nice but credit report seems scary they forclosed on their house too but she said it's from her divorce and her husband wouldn't sign papers to try to get a short sale.
• Reason for moving: wants to be closer to her job. right now commute is 90miles.

Which one would you guys pick? Or deny them both? :(

[Rob K.]

I don't like the first applicant at all. Collections from another landlord are an automatic denial. The 700 credit score looks good on paper, but with a score that high, she might buy a house in the near future.

I like tenants with bad credit who pay their rent. They won't be able to buy a house and many other landlords will not rent to them, which makes it harder for them to leave my house. I'm not saying #2 is the right choice, just better than #1. Her story seems to add up with the divorce. I would either hold out for someone better or go with #2.