Using those Credit Reports

[Jeff B.]

Key areas to review when you screen a renter:

• Credit report
• Credit score
• Eviction history
• Criminal background check
• Landlord reference
• Employment verification

But, what if the tenant has no credit at all?

You need to have an idea of what constitutes an acceptable borrowing history and determine your risk tolerance before you review your tenant’s credit report. Maybe an applicant has an outstanding medical bill, went through a divorce or is recovering after a period of unemployment. Know your deal breakers, and make sure you understand your local laws and your landlord rights. Think about what kind of debt and what debt ratio is acceptable to you, and decide if you’re willing to work with someone who has less-than-perfect credit.  (hint: that's a large percentage of renters)

Before you focus on the top tier of scores, it is important to remember that more than 75 percent of Americans have a score lower than 700.

Review the details from Zillow   located in this link

[Jeff B.]

:GRIN:  I totally ignore Fico and look at 30,60,90 days late and collection activity - - demanding nothing new in the last 6 months.  I want to see the tenant working on making their credit-life better.