Tenant Credit History

A comprehensive credit report and history keeps unqualified tenants out. Knowing a tenant’s credit standing is the cornerstone of a thorough an applicant screening process.

Knowing Your Tenant’s Credit History is Vital

It is literally worth every penny knowing you’ll get paid.
A credit check can mean a lot of different things. It ranges from finding out whether a tenant meets a definite standard to searching through pages of account histories. Either way a credit check is among the top three factors used when deciding whether to accept a tenant’s lease application.

Outstanding Credit Accounts

If an applicant owes money somewhere else, it may be a sign they won’t be the timeliest tenants. Avoid becoming a member of those outstanding accounts by checking them before you approve an application.

Payment History

Consistent payments in the past shows that an applicant is responsible. Unfortunately, the opposite is also true. Set yourself up with the best tenants by approving only those people that make payments when they are due.

Past Due to Creditors

To ensure that you don’t receive late payments always check an applicant’s past due accounts. If an applicant owes someone else money, it could show that they don’t take their financial responsibilities seriously.

Tax Liens

If you’re applicant is having problems with the government on a taxes level then they may have other undiscovered debts that could turn into a nightmare for you. Finding a tax lien on an applicant’s account can prove that they have more obligations than they can handle.

Bankruptcy Information

Bankruptcies are more prevalent now than ever. Between 1980 and 2014, they grew at an annual average rate of 7.6 percent a year, which means you have to watch out. Past bankruptcies can be an indicator an applicant was/is unable to handle their finances. Maybe they’ve learned from the experience, maybe not, but it’s still information you need to know.

Collections

Applicants that dodge collections calls and avoid paying off their debts can be difficult to communicate with. If an applicant has any unpaid amount in collections, you’ll know about it here. If you want to avoid becoming a part of that collections account, you’ll take special interest in this part of an applicant’s credit report.