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Uliver, Real Estate Pro in Los Angeles, CA

what is considered good credit? I mean, if you were to lease a condo to someone, what's the lowest score

Asked by Uliver, Los Angeles, CA Wed Jun 4, 2008

you'd take?

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7
Hi Uliver,

When I'm leasing my condo (currently trying to do now), I won't consider anybody's credit score less than 680. There are those few exceptions, but only if they just don't have much/any credit because they're too young, or they do mostly cash, as long as there is no derogatory credit history! Here's the breakdown of credit scores: Above 720=AA credit; 700-719=A; 680-699=A-/B+; 640-659=B; 620-639=B-/C+/C; 600-619=C/D; 580-599=D/F; Below 579=F. Hope this is helpful to you! Good luck renting!
1 vote Thank Flag Link Thu Jun 5, 2008
Hello Uliver. I too own rental property and I'm a member of the Apartment Owners Association and use their ABC grade credit reports. I accept "A" or "B" rated reports. A's are defined as follows:

Credit Score Between 700 and Perfect
Must Have Credit Report
Credit History Must Be at Least 36 Months Old
No 30 Day Late Accounts in the Last 12 Months
No 60 Day Late Accounts in the Last 12 Months
No 90 Day Late Accounts in the Last 12 Months
No Collection Accounts in the Last 24 Months
No Bankruptcies in the Last 48 Months
No Legal Items in the Last 24 Months
No Tax Liens in the Last 24 Months
Must Have at Least 90% Positive Accounts

and B's are:
Credit Score Between 600 and 700
Must Have Credit Report
Credit History Must Be at Least 24 Months Old
No Collection Accounts in the Last 12 Months
No Bankruptcies in the Last 18 Month
No Legal Items in the Last 18 Months
No Tax Liens in the Last 24 Months
Must Have at Least 80% Positive Accounts

http://www.aoausa.com as a source for you.

I also print out and give these grades to potential renters prior to them completing an application. it's part of a a written criteria list for applicants. Doing this, also helps preventing discrimination and fair housing issues that could arise.

Good luck in your rentals and I hope this guideline helps you.

All the best,
Mark
0 votes Thank Flag Link Tue May 7, 2013
I am a landlord. I would do a 600 score if I had no other qualified renter
0 votes Thank Flag Link Mon Mar 4, 2013
FHA now has a min requirement of 640, this is a good number.

If an applicant is below 640, I would examine why.

Were they laid off, or decently divorced? Did they suffer a death of the primary bread winner in the family?..

Is the bad credit due to medical bills ,not covered by insurance?


Sometimes, bad things happen to good people. If there were some events that were clearly no fault of the applicant that had a negative affect on their credit, Imay give them break.

Kawain Payne, Realtor
0 votes Thank Flag Link Mon Mar 4, 2013
I would want to have a 600 or 620 and above. The higher the score the better the renter
0 votes Thank Flag Link Mon Mar 4, 2013
Most landlords would look carefully at a credit score, because it reflects responsibility. This is important when leasing out to someone you really don't know. A credit score in the upper 600's will usually work, but under that, might not get you the condo.There are ways to improve your credit, one way is to open an account and pay the bills consistantly on time. If you do this enough, it will improve your credit. Another way is to get a credit report and address the records against you. They are listed on the report.
0 votes Thank Flag Link Sat Aug 9, 2008
Cherie's answer sounds good about the credit scores...

However, I actually have income property of my own, that I manage, so I can help you in thinking about "renting" your condo in general.

Credit scores are great. Most landlords require reports.

I look at rental history, too... how long do they usually stay in one place? And do they have references?

Some people credit scores than aren't perfect (like me after my divorce) -- and some people have great credit, but they move alot, which means vacancies.

Great question, good answer from Cherie-- but remember to "go with your gut" when selecting a person to live in your property!
0 votes Thank Flag Link Wed Jul 16, 2008
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