Landlord and Renters Credit Reports

Being a landlord is a full time job, and you definitely don’t need any added stress for a renter that does not pay their rent. With the influx of renters, every landlord needs a way to check a renter’s credit report. Also if you are a renter and want to show up to a landlords office with a recent copy of your credit report, its very simple to get your 3-1 credit report with scores currently with the internet revolution. With the economy and families loosing their homes, more and more families will be renting over the next 4 to 5 years. With the banks making lending guidelines extremely tough, you can rest assure if you are a landlord getting a renter will not be too hard in this current market. You obviously need to protect your self by looking into a renter’s credit history.

What to look out for on a renters credit report

Just like a bank that lends money, a landlord needs to be able to look at a consumer credit report and determine their risk. Typically a bank will look at the entire credit history to examine the risk of someone that is borrowing money from them. If a credit report shows a history of bad credit management that individual is less likely to get a loan. The same principal should apply to a renter. If you pull a credit report of a potential renter and it looks as if that person has a total disregard for obligations you might reconsider renting to them. The bottom line is a credit report will protect you the Landlord. If you are a renter and are unsure of your credit history, you definitely need to pull a copy of your credit report so you can rent. If there is something on your credit report you will be able to fix it before a landlord tells you NO.

What is considered a risky renter?
If a renter has more than a 24 month history of not paying back their obligations, then how are they going to pay you? Typically a lender will look at the last 24 months with most of their decision making on the current past 12 months credit history. If a renter just does not pay anybody back you might look for a better candidate for renting your properties. Once you get renter in there it can be tough to get them out.

What is considered a good credit score?
FICO’s credit scores range from 300 to 850. The lower someone’s credit score, the higher risk they are. Now you also have to look at their entire credit history as well. With the Sub-prime ARM adjustments that are causing families to loose there homes, these might be good candidates for renting too. It’s not like they had any choice but to walk away from a home that the payment increased on dramatically. But as far as a good credit score you might be looking for credit scores in the 600’s before considering renting to someone, unless their circumstance were beyond their control.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.