Credit reports - collection accounts

[Logan McConnell]

Hi, I just got my first credit and background check application.  I am not familiar with credit reports.  I understand the credit score part, but does anyone have any info on collection accounts?  Is it a red flag for a potential tenant with a high 600s score but 5+ collection accounts?  Any info on breaking down and analyzing credit checks would be greatly appreciated.

Thanks in advance! 

[Michele Fischer]

It is hard to tell from the descriptions, but I would try to group the collections into four categories - medical, consumer debt, utilities, and unknown.  The medical and consumer don't overly concern me.  Americans live beyond their means; they would likely be homeowners if they could manage money.  The utilities concern me, because I consider that equal to unpaid rent and utilities can sometimes become liens against the property.  And the unknowns really concern me, because it could be an independent landlord owed money.