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How to Use Credit Checks For Screening Renters

credit-40671_1280-PDThis post will tell you how to use credit checks for screening renters.

Why do we care about Credit Records and Credit Score? A credit is score is an indicator of the probability of a default, nothing more. It will show if the person has been responsible with their finances. If a person is responsible with their finances, odds are, they are also responsible with the rest of their lives. A credit score of 700 or better, indicates a solid person. A credit score below 600, indicates a person with some issues, maybe permanent, maybe temporary. Continue reading “How to Use Credit Checks For Screening Renters”

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Risk of Tenants with Low Credit Score Explained

I wanted to expand on the credit score criteria in any Tenant Screening Requirements just a bit.

It is a fact that lower credit score individuals are a high risk to insurance companies, and for collecting payments. It is a fact that lower credit score individuals engage in riskier behaviors.

Here is why tenants with a low (or 0) are high risk.

Continue reading “Risk of Tenants with Low Credit Score Explained”

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Tenants Credit Score and Income – What do they mean?

check-303401_1280-PDRemember, it takes both a decent credit score, and an income high enough to pay rent to approve a prospective tenant.  Never accept less.  You need to know both the tenants credit score and income level before you approve them.

A renters income will give you the renter’s ability to pay rent.  Their credit score will give you the renters desire to pay rent.  Both are required.

Continue reading “Tenants Credit Score and Income – What do they mean?”