Hi,

In the past, I used to disqualify prospects who have nothing on their credit report because they didn't have a track record of paying bills on time. Now I started to wonder if I've missed some good prospects. I have a 31 years old single mom prospect with 2 kids. Her credit report was blank, nada, not a single loan or payment records. I asked her about this. She explained that her father has been protective and doesn't want her to get into any kind of debt. So he has paid for everything from school, car, credit cards, etc. She just started to live on her own a few years ago. Hmm... she brought me a stack of printed bank statements in the last 3 months. Each month has hundreds of transactions (waiting for me to analyze).

Anyhow I'm just curious about you guys policy on adults who have black credit report. Do you consider that negative or neutral? Please share your thoughts. Thanks.

I've had that go both ways. Perfect respectable people who never needed credit. If they wanted something, like a big screen tv, they save until they had enough to pay "Cash" for it. And the TV they purchased wasn't a 65", 50", but a 32".

I had a tenant, quite a while back, who just preferred to pay for everything with cash - he didn't like debt. He was an excellent tenant.

Now, he was employed and had a bank account. This was a lower-income house & back when I accepted money orders for rent.

Like Ken, I'd be more concerned that she hasn't been paying her own bills - and with two kids? That does seem odd. "grown-up" in one way, but not others...at 31...?

Thank you everyone for your reply

Robert J[CA], great point, Robert. Do you know how to spot which one (good or bad) they would become?

Ken[NY], that concerns came to my mind. However she has a good job with good pay for 3 years. So she could afford the place. She has been on her own in the last 3 years. So her dad let her stood on her own since around 28 years old.

Are those bank statements in her name only?

Get copies of utilities bills in her name.

I definitely ask for and review bank statements.

Get a 12 month rent ledger from her current rental.

Compare all these together.

She is not a grown up. Next

I've taken a couple of different people with a "not enough info to give a score" type of credit report. They were excellent. If you carefully verify identity to make sure you are looking in the right place for information, these are people who don't owe anything to anybody and have never been late enough on a bill to get a late pay.

I checked everything very carefully, including all of their references. If references are good and income is sufficient and can be verified, and their in-home inspection is good, I'll take them. I've got no problem with people who don't use debt to run their lives.

It's pretty common in Texas for the Hispanic community to not have a credit history, they often pay everything in cash. While I was buying a vehicle last year, there was an older Hispanic gentleman that had just agreed to purchase a new truck. He pulled up his pantlegs and pulled out a tattered envelope from the top of his boot and started counting out $41,000 for his new purchase in the office next to me.

I have an almost retired women, needing around 3 years until she gets Social Security. She "worked" at a local publishing house selling advertising and also finding places to sell their magazine. Making good money. The magazine was sold and her "salary" went to "Commission". She left her long term employer for a smaller company that sold advertising and she got a small salary and commissions.

From a $70,000 income to a $38,000 job plus commissions and salary. She needed around $32,000 for the 3x rent formula.

She had no credit history, paying cash for everything.

So I looked at her car. A 15 year old Honda, looking okay. I asked to see under her hood and an maintenance was preformed as needed, everything was okay. Oil clean, filter changed, fluids topped off. And in her glove box, receipts for all work done on her car. She purchased used tires from a junk yard, had them balanced and got a 1 year warranty. Instead of spending $500 on a set of tire, she spent only $165.

I ran her credit report and background info. She once had a store card when having to buy an appliance on sale. Paid off the appliance within a year so was NOT charged interest.

I then asked to see her bank, savings and retirement accounts.

In her bank she had 2 months worth of expenses, ready to pay. Around $3,200. In her savings he had around $7,000, earning a money market rate, 3%. And in her retirement account she have over $100,000. Responsible person.

For 3 years everything was fine. She'd also babysit other tenants pets when they went on trips. Then her newish job was also sold and her salary was cut in half, but still earned commissions. She had trouble, with her income, to pay her raised rent of $895/mo. So she agreed if I'd lower her rent to $850/month, then in a few months if her commissions don't improve, she would move.

SHe moved out. A year later when her social security kicked in she wanted to re-rent an apartment from me. But new rents were over $1,000, above her means.

Just got myself a new truck. They ran my credit thru TransUnion and it was 867.

I thought 850 was the highest?

There are specific scores for FICO that range up to 900. I also received a report a couple of years ago that was 860.

Generally though 850 is it.

No credit usage in 7 years means no credit lines will show up on a report, but you should still have previous addresses on the report.

OK, so I pulled out the paperwork to see what it says about the credit score.

Source was TransUnion, Model: FICO Auto Score 9, Date: 2024-07-29

One section says that scores range from a low of 250 to a high of 900. 12.7% of consumers have a score above 801.

It actually shows my credit score at 873, which is higher than they said during the meeting.

Experian and Equifax were not run. Maybe that has something to do with it?

I had never heard of a score going that high either. I questioned it when they told me. It does have my name on it, although it is my old address from the last vehicle I leased.

I have not had a W2 since 2012 and I stopped doing side work years ago as well. So I have no idea how this works. I do have mortgages for the rentals, most combined with the spouse but a few just me. Have three credit cards. One never gets used (once a year to keep it active), one for the family stuff and one for the biz stuff. All paid off each month. Lots of utilities in my name. Everything paid with no late fees.

No credit = no apartment.

Sure, 1 in 50 might be a good applicant, but you are better off losing that 1 than taking a chance on the other 49.

Don't make landlording any harder than necessary.

No credit = no apartment.

Sure, 1 in 50 might be a good applicant, but you are better off losing that 1 than taking a chance on the other 49.

Don't make landlording any harder than necessary.