Tenant app: Good income but $90k in credit card debt

[Nadia Hale]

Hello everyone 

In need of advice again from experienced folks out there . We have received an application from a tenant who makes $200k a year gross , two people -wife stays at home. They pay all thier bills on time but credit score for the main applicant is 619 due to $90k in credit card debt and high utilization rates . However as far as I can see they have no late payments and meet them 3x income rule . However I am worried about that credit card debt increasing and causing issues . DTI is close to 47%. they've been in the area for a while and we will check out the landlord history bur assuming that turns out ok, what do you think - should we accept? Look for more documentation ? Or pass ?

Thanks in advance !

[Joe Splitrock]

@Nadia Hale I may be less concerned with credit card debt than student loans. Credit card debt is unsecured debt. If they are managing payments and have income to pay the debt and pay rent, I would probably approve their application. These are the type of people who are stuck renting. 

I know Adam said to inquire as to what caused the debt, but I would recommend not doing that. It doesn't matter what caused the debt. Uncontrolled spending is the reason. You won't get the real reason anyways. People always say medical, unexpected repairs, hours cut at work, etc. Nobody ever says "too much clothes shopping" or "too many family vacations". Even if you got the truth, it makes no difference on your decision. Either they can pay the debt or they can't. Even if they gave $90K to charity, that makes them good people that are irresponsible with money.