3 Red Flags in a Tenant's Credit Report

As a landlord, you be required to evaluate the credit report of your prospective tenants. It is important that landlords closely examine credit reports when evaluating a tenant, so that good decisions are made. Here are a few red flags that landlords will look at in a credit report.

1. Bankruptcy

The biggest red flag in a credit report is definitely bankruptcy. While a bankruptcy may not cause a landlord to deny the property to a renter, they will most likely charge a higher deposit because of it. If they are choosing between a tenant with a bankruptcy and one without, they will most likely pick the one without.

2. Charge Offs

Charge offs are another red flag that any landlord will look at. A charge off tells them that you do not pay your bills all the time and eventually the creditor had to write off the debt. This will not look good for a prospective tenant.

3. Low Credit Score

A credit score is a compilation of several key credit factors. If your score is low, it will reflect poorly on you to your landlord. They know that as a rule you have been a poor debtor. 

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