Houston, TX · Member since 2017 · 40 posts · 6 votes
I have two co-applicants for my SFH. Both have steady well paying jobs with good previous landlord and supervisor references but one has great (high 700s) credit and another has horrible credit (550) including a bankruptcy (not sure when) and 3 recent credit checks ping'd in August. They are coapplicant roommates so both would be fully responsible for the full amount. Should I approve them as a group or deny based on one of their credit histories? Any advice would be appreciated!
Fort Collins, CO · Member since 2017 · 273 posts · 91 votes
9y
Hi Karen,
It helps to have approval requirements written up before you start accepting applications, so you don't find yourself in this type of situation and prevents you from being accused of any type of discrimination. This can be minimum credit score, no bankruptcies within the last X years, income, etc.
You can ask when the previous bankruptcy was. If it was a while back, they could be in the process of just rebuilding their score. I know we consider a "credit approval" at 560 or above, so having a coapplicant with great credit could be enough for an approval.
Just decide what you are comfortable with and have a written set of criteria to help with future rental decisions.
Fort Collins, CO · Member since 2017 · 273 posts · 91 votes
9y
Hi Karen,
It helps to have approval requirements written up before you start accepting applications, so you don't find yourself in this type of situation and prevents you from being accused of any type of discrimination. This can be minimum credit score, no bankruptcies within the last X years, income, etc.
You can ask when the previous bankruptcy was. If it was a while back, they could be in the process of just rebuilding their score. I know we consider a "credit approval" at 560 or above, so having a coapplicant with great credit could be enough for an approval.
Just decide what you are comfortable with and have a written set of criteria to help with future rental decisions.
Investor / Real Estate Agent · Oklahoma City, OK · Member since 2015 · 324 posts · 157 votes
9y
I completely agree with Jenifer. I would like to add in that most people who are renting, rent because they do not have that great of credit. (In my area at least)
Investor · Madison, WI · Member since 2017 · 140 posts · 79 votes
9y
The joint and several liability of the lease combined with the high credit of Co-applicant should give some peace of mind. Would applicant with high score qualify on their own? If so, it shouldn't be an issue. Whatever decision you make, be sure that you are willing to do it in all cases where the facts are the same. Good luck.
Houston, TX · Member since 2017 · 40 posts · 6 votes
9y
@Chela O'Connor@Jenifer Kynor@Dylan B. Yes the other applicant would qualify on his/her own. Wow BP community, thank you so much for the quick good advice! I really appreciate it!