Tenant Screening

7 Replies

Has anyone ever come across a tenant with Zero credit? nothing good or bad. Just nothing. Everything else seems legit with the possible tenants except their credit. Their explanation was that they have never financed anything, never had any credit cards, and only paid cash. They are also pretty young. (around 24 years old). Any feedback/thoughts would be appreciated.

I have tenants that have never had a credit card and some that have never even had a bank account. They just cash their checks and pay cash or get money orders. Just look for judgments and evictions on them and check their references.

Promotion
Speed To Lead
Buy hot seller leads w/o subscription
Buy daily seller leads that are actually ready to sell
Finally there's a place where you can buy leads that asked for urgent help selling their house
Sign up for free

Yes I have encountered several actually, they are always young and claim to not have any credit cards.  I am not sure how this is possible, as one has her own website, all are on their own at school etc.  I just have to assume the credit cards are all in their parents names?   In this case I made the parent be a cosigner.  In the future I prefer to only take on tenants who have credit, who can show me they have a history of resposible financial decisions.

Yes I have ran into this many many times.

They just have not established any credit yet.

No credit cards, no monthly bills etc..

Originally posted by @Jassem A. :

No credit is better than bad credit. Check for rental judgments and verify income. This will probably be their first rental as well.

 I agree and have run across this quite often myself (I have screened about 1000 tenants).  No credit is better than bad credit.

Originally posted by @Andrew Fowler :

Has anyone ever come across a tenant with Zero credit? nothing good or bad. Just nothing. Everything else seems legit with the possible tenants except their credit. Their explanation was that they have never financed anything, never had any credit cards, and only paid cash. They are also pretty young. (around 24 years old). Any feedback/thoughts would be appreciated.

 Hello Andrew!

Yes, this comes up more often that you would think. I have screened many potential tenants and have seen several with no credit score. Sometimes it is simply because they have never opened any accounts or do not have any credit cards. You don't have to be afraid of people with no credit, but it can be stressful.

Someone with good credit can reassure you they will pay on time, and the opposite with someone with bad credit. Someone with no credit is not the same as someone with bad credit. Always remember that.

If you have any questions, feel free to contact me.