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Updated about 5 years ago on . Most recent reply

User Stats

94
Posts
64
Votes
Tammy Skeath
64
Votes |
94
Posts

tenant application with BAD credit- but good everything else

Tammy Skeath
Posted
Hello BP family, I have a unit that has had several applicants but all have shown red flags. The last application has everything going for it except their credit score is bad (430). She recently went through a bad divorce and I guess no one paid for their mortgage or auto loan...? that's her excuse. From Cozy, I can see that she was on time with all her payments until last year around the same time for all accounts. These are the pros in her application:
- Teacher with 6 years at same job.
- makes almost 3x rent.
- Can put down 1st, last and deposit as well as a pet fee to move in.
-has good references from school
What do you guys think? yea or nay?

Most Popular Reply

User Stats

3,757
Posts
3,110
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Kenneth Garrett
  • Investor
  • Florida Panhandle/Illinois
3,110
Votes |
3,757
Posts
Kenneth Garrett
  • Investor
  • Florida Panhandle/Illinois
Replied

@Tammy Skeath

I use a scoring system that addresses the following categories. Each category is assigned a maximum score. Some have a flat score and some are weighted. A few examples: credit 650 or greater 20/20, 600-649 15/20, 590-599 10/20 (requires 2 month security deposit) Income 3x the rent 20/20, 2.5 x the rent 15/20, DTI 38%-45% 10/15, 37% or less 15/15 and so on. Maximum score 100. Score of 80-100 = Approved, 70%-79% conditional approval requires 2 months security deposit. I run everyone through this calculation.

Credit Score

Income 

DTI

Employment 

Cats/Dogs

Previous Evictions

Previous Landlord Reference

3rd Party Screening 

  • Kenneth Garrett
  • Loading replies...