Requirement for Credit
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Requirement for Credit (by Jorge [UT]) May 18, 2019 11:10 PM
       Requirement for Credit (by JB [OR]) May 18, 2019 11:49 PM
       Requirement for Credit (by AccidentalRental [NJ]) May 19, 2019 7:11 AM
       Requirement for Credit (by Still Learning [NH]) May 19, 2019 7:28 AM
       Requirement for Credit (by DJ [VA]) May 19, 2019 7:30 AM
       Requirement for Credit (by AllyM [NJ]) May 19, 2019 9:04 AM
       Requirement for Credit (by Oregonwoodsmoke [ID]) May 19, 2019 10:30 AM
       Requirement for Credit (by Jim In O C [CA]) May 19, 2019 2:54 PM
       Requirement for Credit (by Hoosier [IN]) May 21, 2019 4:13 PM

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Requirement for Credit (by Jorge [UT]) Posted on: May 18, 2019 11:10 PM
Message:

Hi all,

do you have a requirement on max Credit Used from a credit report?

Also what are your opinions on the folllowing scenario:

90% of credit used up

all accounts are current

no late payments

thanks,

jorge

--65.130.xxx.xxx




Requirement for Credit (by JB [OR]) Posted on: May 18, 2019 11:49 PM
Message:

I have no requirement for max credit used. But 90 percent credit usage sounds very high. Certainly could become a problem down the road before long.

It also has to be taking a big bite into their credit score. Such a high usage can dramatically lower that score. --24.20.xxx.xxx




Requirement for Credit (by AccidentalRental [NJ]) Posted on: May 19, 2019 7:11 AM
Message:

The credit bureaus factor that into the score (30% weight I think) so indirectly I guess I do consider it to the extent it brings their score below my minimum. --73.248.xxx.xxx




Requirement for Credit (by Still Learning [NH]) Posted on: May 19, 2019 7:28 AM
Message:

I think that is where looking at the report helps. 1 credit card maxed (maybe a few thousand) and 1 department store card maxed (few hundred) and student loan debt with a car loan for a graduating college student with about to start a good salary job is different than a low wage earning couple with 2 kids, a car on its last legs and 4 cards maxed with one of those small loans at 25% they will never get out from under. There is no saying the college graduate has good money management and would get the cards paid down, but that would be a scenario I would consider. --24.61.xxx.xx




Requirement for Credit (by DJ [VA]) Posted on: May 19, 2019 7:30 AM
Message:

I factor the minimum payment into the applicant's total debt-income ratio. A line of credit can change any time. Mine have been raised many times without my request.

--68.10.xxx.x




Requirement for Credit (by AllyM [NJ]) Posted on: May 19, 2019 9:04 AM
Message:

Do they have room on their card to handle an automobile repair or something else without using their rent. That's the big issue with credit. So if there is enough room to pay a big bill and give you the rent it might be OK. But a maxed out credit card is like having no card from a landlord perspective. --173.61.xxx.xx




Requirement for Credit (by Oregonwoodsmoke [ID]) Posted on: May 19, 2019 10:30 AM
Message:

I am looking for late payments and judgements. I look at the total of the loan payments (plus any child support payments).

Many tenants aren't good with their finances. I'm not going to be able to change that. All I want is for them to have enough money to pay the rent and to understand that their housing gets paid first. If they are going to short some bill, it isn't going to be the rent.

I get almost zero applicants that are debt free or even low debt, and that includes the homeowners, who owned before they rent from me and buy when they leave me. --98.146.xxx.xxx




Requirement for Credit (by Jim In O C [CA]) Posted on: May 19, 2019 2:54 PM
Message:

I am very suspicious when the applicant is 80% or more of their credit is used. My fear is a BK is in our future. I discount student and car loans. Are they saving up to pay the BK lawyer? --178.17.x.xxx




Requirement for Credit (by Hoosier [IN]) Posted on: May 21, 2019 4:13 PM
Message:

Which would you rather have.....

1) Person with $2,000 limit and $1,800 charged against it? That would be a 90% usage.

2) Person with $20,000 limit and $5,000 charged against it?

That would be 25% usage.

That metric is one that should not be used in isolation but rather combined with other metrics in the credit report. --99.92.xxx.xxx



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