Credit Scores
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Credit Scores (by Ray-N-Pa [PA]) May 13, 2025 11:58 AM
       Credit Scores (by 6x6 [TN]) May 13, 2025 12:23 PM
       Credit Scores (by S i d [MO]) May 13, 2025 2:18 PM
       Credit Scores (by Bonanza [NC]) May 13, 2025 6:06 PM
       Credit Scores (by plenty [MO]) May 13, 2025 6:07 PM
       Credit Scores (by JS [CA]) May 13, 2025 10:03 PM
       Credit Scores (by JS [CA]) May 13, 2025 10:11 PM
       Credit Scores (by Tim [CA]) May 13, 2025 10:43 PM
       Credit Scores (by Gene [OH]) May 14, 2025 4:06 PM
       Credit Scores (by Sisco [MO]) May 14, 2025 5:36 PM
       Credit Scores (by Jim [CA]) May 14, 2025 5:43 PM
       Credit Scores (by JS [CA]) May 14, 2025 7:43 PM
       Credit Scores (by Pmh [TX]) May 16, 2025 1:50 PM

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Credit Scores (by Ray-N-Pa [PA]) Posted on: May 13, 2025 11:58 AM
Message:

I know Roy asked the question but I am sure that there are many others who wonder about how well each of the various credit scores performed at least with me over the years. Many years ago, I complied over a seven-year data base of credit reports from folks who have sense moved out of my 41 unit place I used to own. Please understand that rural Pa doesn't have the crazy tenant protections that larger cities do so if you have rentals still in those goofy locations, adjust your policies and rethink your business model after you smack yourself a few times.

Credit 520 and below - only about a 30% probability of completing the initial one-year lease. These folks were an automatic NO for all my units. When you would get rid of these head aches, almost all of the time the deposit was eaten all up.

521-579 very high risk acceptance if you elect to accept these folks. Above about the 565, people began managing their own lives instead of the other way around. Above 560 in a class C apartment, I would consider possibly accepting them if they had a co-signer or extra deposit saved up. No special programs. Typically, below 560 I didn't accept them unless it was the middle of off season, and afterwards I would commonly regret it.

Above 580 - regular acceptance in class C apartments. About a 80% completion rate. Sometimes life does jump in their way, but they tend to start to manage things better.

For class C Houses, I typically add about 30-40 points to my minimum requirements. The lease completion rate skyrockets upward and people stay longer.

For Class B places - You will need at least a 650 credit score and that is if I didn't just overhaul the place. If I just took that place out of phase maintenance, I add at least 20 more points to my minimum.

People tend to stay long term on my class B and C houses. It is measured in yeas or even occasionally decades. Long term in an apartment is different than long term in a house. I have had people stay decades in apartments before, but they are far fewer.

So I find there is a balancing act that gets performed between rent raises, vacancies, tenant credit scores and apartments vs houses.

Hope this helps some folks out there. If you state has silly laws, what you do is on you. Blaming the applicants doesn't improve YOUR business model. Work on your business and stop working in your business.

.

--67.140.xx.xxx




Credit Scores (by 6x6 [TN]) Posted on: May 13, 2025 12:23 PM
Message:

Thank you, Ray.

Seems a lot of folks these days have horrible credit scores. I do somewhat consider the score but mainly look at the why behind it. --73.19.xxx.xx




Credit Scores (by S i d [MO]) Posted on: May 13, 2025 2:18 PM
Message:

Scores are meaningless. What's on the report is important.

--184.4.xx.xxx




Credit Scores (by Bonanza [NC]) Posted on: May 13, 2025 6:06 PM
Message:

I have a minimum of 650 for SFH and 620 for a duplex because I don't want the drama.

If there is some reason your score is below that I don't really want to know because I am not going to deal with it.

Sid says the score is meaningless. I disagree.

It's a starting point. I may still DQ you but you still need that mark or we don't even go any further. I am looking for people who pay their bills on time. A credit score generally shows that. --65.188.xxx.xxx




Credit Scores (by plenty [MO]) Posted on: May 13, 2025 6:07 PM
Message:

Interesting data. Thanks for sharing. --172.59.xxx.xxx




Credit Scores (by JS [CA]) Posted on: May 13, 2025 10:03 PM
Message:

I absolutely disagree with Sid and I have quite a few doors and quite a few years.

The only score I use is FICO and I don't consider anyone below 650. My average score is well over 700. I still make sure the public records and don't rent to anyone with a recent BK or any eviction.

I have never had an eviction since adopting these criteria. --99.33.xx.xxx




Credit Scores (by JS [CA]) Posted on: May 13, 2025 10:11 PM
Message:

I guess the timeframe is important...

It has been 10 years since my last eviction --99.33.xx.xxx




Credit Scores (by Tim [CA]) Posted on: May 13, 2025 10:43 PM
Message:

I'll say it again .... to me credit reports only tell a part of the story. I require three months of bank statements so I know how much money they actually make, where it goes (child support and some other obligations often don't show up on credit reports), how much they have left after paying their obligations, etc....

Try it...you'll like it!!!

--73.2.xx.xx




Credit Scores (by Gene [OH]) Posted on: May 14, 2025 4:06 PM
Message:

I like many others like to look at the entire credit report, but I have a spreadsheet of all of my tenant's credit scores from the early 2000's. For my B properties, it looks like I had a good experience with tenants whose credit scores were 620 or higher. The best experience was with those tenants whose credit scores were 650 or higher. --23.245.xxx.xx




Credit Scores (by Sisco [MO]) Posted on: May 14, 2025 5:36 PM
Message:

I have shared many examples of the person who had charge off accounts and collections with FICO scores nearing 700 and also those with a history of paying their bills as agreed with FICO scores in the low 600’s.

I would like to ask why do you care about FICO scores if you are screening applications yourself? Why would you take someone who doesn’t pay as agreed but carries a high score? --149.76.xxx.x




Credit Scores (by Jim [CA]) Posted on: May 14, 2025 5:43 PM
Message:

I have A- B+ rentals. 700 or more is my requirement. Below that I is not successful. --99.23.xxx.x




Credit Scores (by JS [CA]) Posted on: May 14, 2025 7:43 PM
Message:

Your experiences don’t necessarily replicate across the board. In my case I have never seen an applicant with a high credit score have any recent negative history.

Obviously we still review the other standard criteria.

But as I always say do what works best for you. This has worked well for me. --99.33.xx.xxx




Credit Scores (by Pmh [TX]) Posted on: May 16, 2025 1:50 PM
Message:

my mkt is students in a town with two universities. I run reports. their reports consist primarily of student loans and one or two cards. I won’t consider anyone less than 700. On side note Sid: my score had been 850 for years. I doubt anyone will bother to see what’s on my report…one driver for me though is what does their car look like….is it clean…. --104.28.xx.xxx



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