Can you reject tenant based on credit score?
Can you reject tenant based on credit score?
You can, however, reject tenants based on their credit report, criminal history, references from other landlords, income, or any other reason that’s not part of a protected class. Prospective tenants could claim you are rejecting them based on discriminating reasons.
Does getting denied for a lease hurt your credit?
Whether it’s your rental application that’s been denied or a credit card, mortgage or other type of loan, your credit report will never indicate your request for credit has been declined. And since it’s not in your credit report, it won’t affect your credit score.
Why would you fail a credit check for renting?
Tenants often fail credit checks because their salary is deemed too low for them to comfortably afford the rent. Agencies will expect their gross pay to be at least twice the rent, sometimes as high as three times the rent, and they will automatically fail anyone earning less.
How do I reject a tenant with a low credit score?
Here are five ways to minimize your risk if you choose to rent to someone with a bad credit score:
- Find out the reason for the bad credit score.
- Ask for proof of income.
- Ask for applicant’s previous rent receipts, if applicable.
- Require more money upfront or a higher deposit.
- Require a co-signer.
How do you stop credit check when renting?
A common way to rent a place to live without a credit check is by asking a family member or close friend with good credit to cosign for you. In this case, the cosigner applies for the apartment with you and signs the lease indicating that they will cover the rent in the case you default on your payments.
What is good credit score for tenant?
So, if your renter has a score of 670 or higher, that’s a very good credit score for most rentals. Most landlords are looking for a score somewhere between 600 – 650 since renters don’t have the credit history of making mortgage payments to boost their credit score.