Applicants with credit score less than 550

[Pramod Ponna]

I am a new landlord. I have two applications from the same household. Both have credit scores of less than 550 and less than 60 % on-time payments. They make 3x rent, but given the missed payments and credit scores, I plan to deny the applications. Do you have any thoughts/comments/recommendations?

[Nathan Gesner]

Quote from @Pramod Ponna:

The application is supposed to determine a level of risk. Then, you decide whether to accept that risk and how to mitigate it.

Their credit scores are in the tank. That shows financial irresponsibility. If you have to send them to collections later, it won't matter do any good, because their credit is already so bad that another hit won't affect them.

They missed 60% of their payments. That, coupled with their credit score, shows you who they are. 

Deny and move on.