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Re: FICO score of 483 - Landlord Forum thread 324418

Re: FICO score of 483 by Anonymous on September 13, 2014 @19:34

                              
Gee whiz, I have been screening for about three weeks now and I have not had anyone report a score that low!

Here is what Eric from Minnesota says about such a score:

per ERIC MN 10-26-2013
Income will tell you the applicants ABILITY to pay rent. No more than 30% of the gross income should be allowed for rent. Even that is a stretch for some people. The credit score will tell you the applicants DESIRE to pay rent. Anything less than ~650 is below average for a renter. Anything less than 620 is a D or worse grade. That is a true FICO score, not the new, made up scores.


Credit score directly predicts the probability of getting paid. It also indirectly indicates a persons predicted behaviors.

LL Tip: Late rents and what they mean

A little unconventional wisdom. Your rent is late, should you be concerned? Odds are you have a problem and are headed for an eviction, but here's something to think about.

If the tenants credit score is 700+, they are probably just absent minded and need a reminder. Once they get the automated payments set up, or a monthly text from you, you will not have a problem. The anticipated delinquency rate is ~5%.

If their credit score is 650 - 699, they may be trying to pull something, and they may be having issues. But odds are, they are probably just a bit sloppy, and disorganized and not much of a reason to be concerned. The delinquency rate can be expected to be ~15%.

If their credit score is 600 - 649, they probably are starting to have an issues, and will probably be late a bit more often if there is an issue. They’re at least going to try to keep the rent payments timely, but issues may still result. Keep your eye on them, don’t give them too much slack, and you should be OK. The delinquency rate can be expected to be ~31%.

If their credit score is 550 - 599, they are trying to pull a fast one on you. Don’t let them take you for more than the law allows. It may get better, if you still believe in Santa. I bet this is not their first eviction. Odds are, they had slow rent payments right after the first moth. The delinquency rate can be expected to be ~51%.

If their credit score is 500 - 549, they are lying and must go. It will not get better from here. If you have a two month’s of a deposit, good for you. Get them out before the deposit is used up. You should have passed on these renters, once you see the damage left behind you will wish you would have. The delinquency rate can be expected to be ~71%.

If their credit score is less than 500, you have a fool for a property manager.
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