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Re: Is high credit card balance a red flag?
by outabout (Co)
on June 26, 2012 @18:34
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Hi Anna,
Thanks for the input. How do you figure credit card payment, only the minimal payment required?
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Re: Is high credit card balance a red flag?
by Anna Mouse
on June 26, 2012 @19:01
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What we are trying to do is assese the risk involved in a) them not being able to pay rent
b) possibly if they will be content living at the property because they can afford it.
In regards to a) you are 99.9% safe because of their credit score. Because of their credit score you can rest assured that all of those horror stories will very likely NOT happen to you.
In regards to b) I would use the minimum payments to total all payments due shown on the credit pull. Hopefully there is money left over for fun and savings?
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Re: Is high credit card balance a red flag?
by outabout (CO)
on June 26, 2012 @19:13
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Thanks, Anna.
By using minimal payment their totally debt payment is pretty low compared to income. The total debt payment (credit card + student loan) plus rent is less than 1/4 of gross, and 1/3 of net.
I think that I will approve them.
Thanks for your input, appreciate it very much!
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Re: Is high credit card balance a red flag?
by P-Bone in WNY (NY)
on June 27, 2012 @07:20
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The problem with this case is that if they only make 3.5 times the rent gross and you can immediately assess a cost of 1 times the rent (1/4 gross income), that leaves them with only 2.5 times the rent. Is that enough to meet your screening needs?
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