Potential Tenent is "unknown" With credit bureau

11 Replies

Is it possible the have SS and be unknown with Credit bureaus?   Especially if had 3 decent jobs  and decent income. He is young at 25.  I have a feeling the person filling out details did something wrong.  How does it get correct info?

If you don't use credit then you won't be reported to the credit bureaus. A 0 credit score is not a bad thing.

Exactly what  @Kyle Hipp said.  Sometimes with our younger applicants they will have 0 credit, which just means they do not have credit cards in most cases which is not necessarily a bad thing.

Does your report provide specifics such as derogatory credit and non-derogatory credit? Late payments in the last 24 months?  On top of the actual raw score that info can help evaluate a tenants credit and ability/willingness to pay bills as well.

Prospective probably doesn't have any credit. I would speak with the applicant if you think it may be an error on the application.

I have encountered this situation on 2 occasions.  The first was a recent college grad who was 1 of the roommates moving into my property.  Since I had a clause in the lease for "joint and several" liability, I wasn't as concerned because the other roommates would be on the hook if she didn't pay.  This situation has worked out fine.

The other situation was for a Sec. 8 tenant who was in her 60s and she said she had never had a credit card or a bank account.  I believed her; however, I ended up not renting to her because she couldn't come up with the security deposit.  

Unfortunately, with no credit, it will be harder for the prospective tenant to have utilities in his name without large deposits as well as your deposit requirement, which makes it more difficult for them right from the start.  I had to cosign on my children's first year for their rental and utilities while they were in college as they had no credit score because they never had credit.  I was shocked at the deposit the electric company wanted unless I cosigned, and can't imagine the burden it puts on young people trying to establish themselves.   I would be careful if he has no cosigner initially.  While he may be very reliable, as my kids were, it's a huge risk with no history, especially if this is his first apartment or you can't verify timely payments from the previous landlords. 

Ok thanks for the info.  So as long as they have 0 credit they are considered "unknown"? 

I will  try and get him to get cosigner.  Thanks again.  

Agree with @Lynn M. we had similar experiences where tenants had support from a local church but we had more hoops to jump through with some utilities; particularly our propane set-up.

I am not sure of your application process, but please verify that the person who is requesting to rent your place is providing some identification (driver's license, SS card, pay stubs, or gov't issued ID.). It just helps give you a little more confidence before renting to him.

THIN FILES are ironically the new norm now that Credit Underwriting  and ID verification tends to be more strict.

he's only 25 and assuming you have his SSN, DOB, and are running an address he's been at least a year, at least credit INQUIRIES themselves should have generated a file so if theres a thin file its one thing, but if he's really actually previously UNKNOWN then he is now instantly KNOWN to at least one of the big 3 at the moment u pulled the credit report.

assuming those 3 pieces of ID (SSN, DOB, ADD) are all accurate, cuz if any of those 3 are 'novel', it will throw off the data and likely also give u a thin file flag.

Could have a fake S.S card.

If they do not have credit yet it is tough for young people to establish. Usually a credit card with a deposit, gas card, or a clothing store card gets them going for a few hundred. 

I had a married couple as tenants a few years ago.  Although they were in their late 20s, they were very "anti" credit.  Neither one had ever had a loan or a credit card.  However, their credit history didn't show as "unknown".  They both actually had really high credit scores though, if you pulled their credit reports, then it showed there was no history.  It didn't bother me.  They were great tenants who always paid on time.

However, they moved out because they bought a house.  The bank initially pre-qualified them for the loan but then, when it went to underwriting, it was a big fat no because of the no history.  Eventually, one of the parents got the loan for them...but it is still JUST the parent on the loan.  Neither one of them were put on the loan, even though it is their payments and their down payment.  So they still have no credit history.  I thought that was so crazy and foolish, but it certainly wasn't my place to give an opinion.   

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