Only accept FICO of 600+ ? - Landlord Forum thread

Only accept FICO of 600+ ? by JW (Florida) on July 18, 2012 @10:57

I've created my criteria list, but I'm not sure if I should just reject anyone with a score of less than 600, or go by non-score criteria (must have more current than deliquent accounts, etc.), or a combination of both. Thanks.

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Re: Only accept FICO of 600+ ? by Stephen (WA) on July 18, 2012 @11:28	[ Reply ]

We drew the line at 580. Percentage-wise it is pretty low but I still get applicants who don't make it.

Re: Only accept FICO of 600+ ? by NY-L on July 18, 2012 @12:12	[ Reply ]

We follow a simple formula of one month's rent plus security for qualified rental applications (no credit or reference issues) and the addition of last month's rent for qualified rental applications (with credit issues or minimal references). As a general rule, the tenant applications all have stable, credible employment histories and long-term tenancies. Many landlords are interested in the debt-to-income ratios and personal identification obtained from the credit report profile. Not all landlords are exclusively interested in the credit score. Credit scores (without a full credit report) have limitations and are not, necessarily, the landlord’s best screening tool. Quality tenants with sufficient incomes and qualified references sometime provide low credit scores (which is perfectly acceptable provided the credit issues are easily reparable).

Re: Only accept FICO of 600+ ? by Eric (MN) on July 18, 2012 @18:16	[ Reply ]

I stick to 600+ generally, mostly 620+ lately. Anything less and I get a 2x the rent damage deposit. They MUST have 3.5x+ the rent in income. They must be clean from a criminal standpoint. They must have careers, not jobs. Credit score will give you the tenants DESIRE to pay. Income will tell you their ABILITY to pay. Remember, lower scores will generally have more risky behaviors. More insurance claims, more problem behaviors etc.

Re: Only accept FICO of 600+ ?