Young couple w/ Guarantor but one BAD credit score

Young couple w/ Guarantor but one BAD credit score by EM (TX) on April 3, 2012 @11:04

Would anyone consider these applicants, or is this an automatic pass for a 1 unit cottage / MIL house? Cliff's notes: good guarantor, one tenant has horrible credit score.

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Guarantor (female's dad): 660 credit, report looks good (on time payments), annual income over 200k

Female: 668 credit, 20 years old (student/part-time job)
Male: 450 credit, 21 years old (student/part-time job)
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Option 1: Call guarantor, make it clear he's on the hook when the couple breaks up in 4 months, and go ahead if he sounds OK with this option.

Option 2: automatic pass because of the low 450 score.

I guess what I'm really asking is are there ANY circumstances you'd rent to someone with a sub 500 score?

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Re: Young couple w/ Guarantor but one BAD credit score by Jake on April 3, 2012 @11:19	[ Reply ]

If you have no better applicants you may want to take this one. But you need to check the criminal background of both. If the Dad wants to be the guarantor he will have to sign the lease along with the others. Then you need to jack up the deposit because of the added risk. If the Dad objects, you have to wonder why he does not want them at his house. Ask both students to have a transcript mailed to you to make sure the deadbeat is really a student and a passing one at that. Understand that this will be a very unstable tenancy that is unlikely to live out the lease. So, if you have someone else better you need to take them.

Re: Young couple w/ Guarantor but one BAD credit score by Greg on April 3, 2012 @12:13	[ Reply ]

Take option 2. No, you don't want to rent to someone with a sub 500 score. People with crappy credit scores are almost always a lot more work as tenants. If you do decide to rent to them be sure to get first month, last month, and MAX security deposit. Be aware that if the Guarantor lives in another state and you have to go after him it makes it that much harder. Greg in Phoenix

What is a MIL by Anna Mouse on April 3, 2012 @12:18	[ Reply ]

multi ? ? I second what Jake said keep looking. There is likely a better tenant out there for you. In the future you can always lower your criteria. How long have you been empty? For a cosigner a 660 credit score is not good. 700 is the point I consider good. If both tenants were at 660 then in some situations that may be considered good. Depends on the value of the property.

Re: What is a MIL

Re: Young couple w/ Guarantor but one BAD credit score by Anonymous on April 3, 2012 @13:28	[ Reply ]

I would pass, at this age they have not had long to even establish some credit.

Re: Young couple w/ Guarantor but one BAD credit score by Jaws, CA on April 3, 2012 @16:10	[ Reply ]

I would move on to another applicant. My bottom line is a credit score of 700. No tenant is better than a bad tenant.

Re: Young couple w/ Guarantor but one BAD credit score by Anonymous on April 6, 2012 @00:59	[ Reply ]

You're doing it wrong. Option one is to jack up the deposit. Money talks and BS walks as they say. Funny how there have been several posts lately about tenants with good credit who are on a no-pay path. Credit scores are made for large lending institutions. You're getting all hung up over a number that wasn't developed for your situation. The details of the applicants' credit history is more important. To simply rely on a number is lazy.