When you know the person won't qualify but...

[George P.]

When you know the person won't qualify based on what they told you (credit) and you explain the application/prescreening process explaining this will be an issue, but they want to go ahead and submit an application and pay application fee ("if it meant to happen it meant to happen" attitude) - what do you do? Run credit and send the rejection letter with explanation? Or try to discourage from applying?