Tenant screening with SmartMove, good credit score but bad debt?

[Cooper B.]

I don't have much experience with tenant screening but I came across something today that I can't figure out.

I pulled a credit report from TransUnion / SmartMove on a potential tenant.  They recommend that I accept the tenant, and give a "Resident Score" of 789. This is the first time I have used this service so I don't really know what the "Resident Score" means.  Is it supposed to be similar to a FICO score?

What is confusing me is that in early 2014 there were 2 credit card accounts that were closed and charged off as bad debt with balances of over $25k.  There is also a mortgage showing up that was closed in early 2015; under remarks it states "Settled - less than full balance".  

I asked the potential tenants about the credit cards and he stated that he had a major medical issue 2 years ago and told the credit card issuer that he couldn't make payments, then he never heard anything else about it and didn't ever receive any more bills.

To me this seems like some pretty significant red flags, yet the automated recommendation is suggesting that I should accept the tenant.  There are a number of other accounts in good standing, but those charge offs were just last year.  

Anyone out there have any experience with the SmartMove service that could give me any advice here?