Rental Applicant Credit Report Interpretation

4 Replies

I have an three people wanting to split the rent on a house I own.  Two of the applicants have outstanding credit, the other is  on the low side (500's), which is obviously concerning. I'm struggling to interpret his report and am hoping someone here can help.  He's used 100% of his available credit,  but shows $0 in monthly payments, a large sum of total debt (about $65K), but all accounts (which are student loans) are marked as closed and marked as seriously past due.  His "time since late" is one year.  This info all seems contradictory to me.  How can he have used all of his credit but has no monthly payments?   And how can he have seriously past due accounts if all the accounts are closed?  Should I reach out to this person for an explanation and references or just reject and move on?

Sounds like he has trade lines that were charged off or when closed the payments were zeroed out. Either way, bad news.

@Roschelle McCoy are you renting to each individually or would they all be on the lease together? If you are approving them together, they would need to understand if one doesn't have money to pay, the other two need to come up with it. 

When each applicant can not qualify independently you must reject them all. The bad tennat will be th eone you end up renting to when th eother two bail.

Decline their application.

@Joe Splitrock I had intended to put all three on the lease. Sounds like I need to find some new applicants. Thanks for the reply!

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