2 applicants, one with great credit one with poor credit

[Karen W.]

I have two co-applicants for my SFH. Both have steady well paying jobs with good previous landlord and supervisor references but one has great (high 700s) credit and another has horrible credit (550) including a bankruptcy (not sure when) and 3 recent credit checks ping'd in August. They are coapplicant roommates so both would be fully responsible for the full amount. Should I approve them as a group or deny based on one of their credit histories? Any advice would be appreciated!

[Jenifer Kynor]

Hi Karen,

It helps to have approval requirements written up before you start accepting applications, so you don't find yourself in this type of situation and prevents you from being accused of any type of discrimination. This can be minimum credit score, no bankruptcies within the last X years, income, etc. 

You can ask when the previous bankruptcy was. If it was a while back, they could be in the process of just rebuilding their score. I know we consider a "credit approval" at 560 or above, so having a coapplicant with great credit could be enough for an approval. 

Just decide what you are comfortable with and have a written set of criteria to help with future rental decisions. 

Good luck!