No Fico score renter =585 Fico more or less?

[Account Closed]

How do you equate a potential renter with no fico with a low fico potential renter? 

For me anyone with a fico below 560 is probably a life long deadbeat, and anyone with no credit file, probably is also a dead beat, but they could have no credit for many reasons other than their lack of credit worthiness, so I assign 25 gamble points to the no credit renter and treat them as equivalent to a 585 fico. While underwriting considerations given to compensating factors may carry the day for you, I find raw numbers have their own value as well. How would you equate no fico, if you were to think about the fico value equation? 

[David Dachtera]

Originally posted by @Account Closed:

How do you equate a potential renter with no fico with a low fico potential renter? 

For me anyone with a fico below 560 is probably a life long deadbeat, and anyone with no credit file, probably is also a dead beat, but they could have no credit for many reasons other than their lack of credit worthiness, so I assign 25 gamble points to the no credit renter and treat them as equivalent to a 585 fico. While underwriting considerations given to compensating factors may carry the day for you, I find raw numbers have their own value as well. How would you equate no fico, if you were to think about the fico value equation? 

Well, I guess the first thing to point out is that a score is just that - a score. It is, otherwise, meaningless. The best definition I've ever heard of a credit score is "a numeric representation of someone's likelihood of going 90 days or more late on a payment in the next two years".

That said, no one has actually has a score - until their credit is pulled, and then the resulting score calculation is based on the information available at that time. Then, that score "expires" because credit info changes constantly as people use (or abuse) their credit. If my credit is pulled today, that's my score today. Tomorrow - or even minutes from now, it can be different.

The real value is in the credit report resulting from that pull.

A recent retiree could have sterling credit - until their income becomes one quarter of what it was when they were working.

Anyone can have sterling credit - until an illness or injury lands them in the hands of the healthcare syndicate. Then, all bets are off.

My point is that the "lifetime deadbeat" thing probably is not appropriate until you look at the actual credit report resulting from the credit pull and see what's REALLY going on.

My credit mentor says that scores get no one approved, but can get anyone rejected.

For what it's worth ...