Low credit score applicants

1 Reply

We have our second rental property ready to go and just had a couple complete a credit and background check. Background on both are clean but both have low credit in the 530’s. From the report it appears they have gotten several small short term loans. Some have been paid on time some have not and ended in collections. The female is currently in school and has student loan debt. Their current home they have rented for 9 years. Both have had steady jobs for 5+ years and make well above 3x rent. I plan on calling the applicants to find out why the small loans were not paid. Does the income, steady job, and long rental history out weigh the bad credit?

Edit: The elederly mother will also be living with them should we run her credit in hopes of a higher score since she will be on the rental agreement. The mother also still works. 



You'll get mixed opinions on this but I say no. ie, bad credit is bad credit. Doesn't matter how much they make, they can't manage their money and that will show up as late or unpaid rent.