Rental Application Denial question

[Erin Hauser]

I have received 3 applications from a group wanting to rent a unit, however two stated they have bad credit and one has no credit. Can I deny them based on this information alone, or do I still have to have them to pay for the credit check? It's likely going to come back negative and I'll deny them, so shouldn't I save them the $25? My gut says not to rent to them regardless, but I haven't ever denied a rental app, so I'm not sure exactly what to tell them.