My applicant came back with “Approved”
If your applicant came back marked Approved, this indicates they passed your criteria for credit scores and criminal and eviction criteria in the system. Now, not so fast; you still have some work to do on your part. Did you remember to verify rental history, employment and income? Do they meet your vehicle and pet policy for the property? Did you get a chance to check their ID and match faces? Can they afford your deposits? Remember, this is your investment. Take the time to make sure all your bases are covered before you sign a lease and hand over the keys.
My applicant came back with “Conditional”
If your applicant came back marked Conditional, this indicates they may have passed your criminal and eviction criteria in the system, however their credit score is being flagged. Don't get ahead of yourself and approve someone who comes back with Conditional. You have more work to do to make sure there are no red flags that would cause issues.
Is their credit a “NO SCORE?” (Credit code “4”or “N/S”)
If so, what’s the deal? Use caution and ask yourself these questions:
No credit established? Inactive accounts on their credit? Or is their credit so poor they were not issued a score? A long list of collections and poor payment status can get so bad their score drops off all together. Know the difference and protect your investment. There is a BIG difference between a younger applicant in school who hasn’t established much credit and an applicant who doesn’t have any credit because they have been in jail for five years or because they seem to be “off the grid.” Did you check their ID and match faces?
Is their credit in a lower range? (525-599)
If so, take a look at their credit report closer. Read the credit factors at the top that went into their score. Do they have available credit? Do they have civil judgments and liens?
Once you have determined what is going on with their credit score don’t forget rental history, employment and income verification. These might be the deal breaker. You may want to consider extra deposit, a cosigner or increased income requirements for those in the conditional range. A substantial income can mean all the difference and extra deposit can help cover things on your end. If you require any of these additional considerations for approval make sure to send the Adverse Action letter provided in your account for each applicant.
My applicant came back with “Declined”
If your applicant came back marked declined this indicates they failed one or more areas of your rental criteria in the system for credit scores, criminal and/or eviction records. Looks like we helped you dodge a bullet this time around. Take a look at the final investigative overview report for more details. Although you may be anxious to get that rental filled it’s never a good idea to fill it up out of desperation with a tenant who doesn’t meet the criteria for approval. It’s best to wait for a tenant you know you can trust to pay your rent on time and take care of your investment. If you decline an applicant make sure to send them the Adverse Action letter provided in your account for each applicant.