NO CREDIT history- has anyone accepted a tenant th

NO CREDIT history- has anyone accepted a tenant th by ying on December 11, 2014 @11:12

Hello- has anyone ever accepted someone with no credit history? I have a situation where I have a young couple, one in college, one right out of college interested in renting. Their parents do not wish to co-sign. Has anyone accepted this situation if they have jobs and have good references?
Is no credit better than bad credit?

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Re: NO CREDIT history- has anyone accepted a tenant th by Anonymous on December 11, 2014 @11:29	[ Reply ]

If they can't even get a vote of confidence from their own parents, I wouldn't take them on! Too young, too inexperienced, and they don't meet your standard criteria. PASS!

Re: NO CREDIT history- has anyone accepted a tenant th by Jack Klein (NY) on December 11, 2014 @11:36	[ Reply ]

I would consider accepting tenants with NO credit history under certain circumstances. No credit is better than bad credit, but the lack of history doesn't help that much. If you're sure you have a ss# match on them and run a credit check you may still get some info on a credit report. If this couple is right out of college, what about student loans? Are their student loans on their credit report? If their loans are deferred, they still may not have a score yet, so I would want a 3rd month deposit. (I know some states might have a problem with that) Often, student loans can ruin credit. I've seen many times that they start reporting before the student realizes it and that can ruin someone's credit, even though they may be otherwise an excellent credit risk, but always remember, if their credit score get's knocked down below 600 by student loans, they may not have much credit worth protecting. Like John at the LPA says, if they don't pay the rent and you threaten to damage their credit, they will laugh at you.

Re: NO CREDIT history- has anyone accepted a tenant th by Anonymous on December 11, 2014 @11:58	[ Reply ]

I've done it and sometimes it works out and sometimes it doesn't. I've run credit checks on people who claim that they have no credit just to see if that's true and if they have any debt or judgments against them. You can sit with them at a library and go to annualcreditreport.com and they can sign on and get a free credit report right in front of you. I think you have to pay a nominal charge extra to get the FICO score but at least you'll see all of their debt.

Re: NO CREDIT history- has anyone accepted a tenant th by Shaun (Fl) on December 11, 2014 @12:26	[ Reply ]

I'm is a college town... So... yes. #1- Income-Is their income over your accepted cut off. For example mine is 3.5, but I really look for people with income higher than that. #2 - Still run credit..look for unpaid bills, high credit card balances. #3- Check the court records in the same Town they went to college. Look again for unpaid bills. #4- Verify previous LL, talk to them #5- Collect LMR, in my state I can collect 1st, last, and SD, and there is not legal limit on security.

Re: NO CREDIT history- has anyone accepted a tenant th by Bill on December 11, 2014 @13:53	[ Reply ]

Do either of them have a job. The one right out of college, is he a graduate?

Re: NO CREDIT history- has anyone accepted a tenant th by Bill (MD) on December 13, 2014 @16:15	[ Reply ]

This is tough. What is their major? What is their current income? Is their major of HIGH commercial value? What plans do they have as far as a job? If their parents won't co-sign, it may not be their fault, they may simply have ### parents. But unfortunately that will punish them. If their parents won't sign it's not a good sign. Can they get someone else to sign? Too much risk....

Re: NO CREDIT history- has anyone accepted a tenant th by Damon on December 18, 2014 @03:59	[ Reply ]

According to the company I get my credit reports from "no credit history" usually doesn't actually mean there is no credit history. It usually means bad problems that they don't want to report either because of laws or their companies policy. There is a reason their parents won't co-sign for them too. I rented to some tenants that my gut told me would be a problem one time. I did it because I had the house up for rent for about 3 months without getting anybody in it. I wish I wouldn't have. They were the only tenants I EVER had any nightmarishly bad problems with. They didn't even have "no credit history" so it sounds like yours could be worse. Just be patient somebody will come along. Look at it like this. Maybe they are OK. MAYBE. When somebody looks perfect as a potential tenant it is still a risk to rent to them. Do you really want to take an even greater risk than that? Maybe you will unfairly reject some people but would you rather get burned and be unable to get some "professional tenants" out of your house because they know how to work the system? It is very difficult to believe how bad it can be with tenants like that until you have had them in one of your houses. I didn't believe it until I saw it. But if you can believe it based on the advice of others (myself included) you can save yourself a lot of stress because the stress it will cause you is even worse than the money it will cost you which can be a hell of a lot.

NO CREDIT history- has anyone accepted a tenant th - Landlord Forum thread 328584