Declining an application based on credit score - anything to know

[Colin Gearity]

We are currently accepting applications on a rental and just received an application from a couple with really low credit scores, along with one of the individuals having an account in collections.  They viewed the property last night and seemed like a nice couple.  Apparently their current rental has been sold and they need to find a new place quickly.  I know everyone's ears are ringing right now with alarm bells, but is rejecting them as simple as emailing them and letting them know they do not meet the qualifications?  The topic of a needed credit score was never discussed during the viewing.

Do people have credit score minimums they abide by?  This is a B type neighborhood.

[Mike S.]

I'm surprised that no has mentioned that if you deny for credit you must include an Adverse Action Letter. This is the law and it's covered under Fair Credit Reporting Act.  Required in your letter/notice:

the name, address and phone number of the CRA (including a toll-free number for nationwide CRAs) that supplied the report

a statement that the CRA didn’t make the adverse decision and can’t explain why the decision was made

notice of the consumer's right to a free copy of their report from the CRA if they ask for it within 60 days

notice of the consumer's right to dispute the accuracy or completeness of any information provided by the CRA

the consumer’s credit score, if a score was used