Hello all!  I just wanted to get some feedback on this to see what many of you think regarding using credit reports for housing.  I have recently been looking to move from my 1 bedroom apartment into a 2 bedroom.  My fiance and I found a very nice 2 bedroom townhouse with the size and location that met our demands, with an affordable price range.  I had been paying $445 a month for my current 1 bedroom for the last year and the rent at this new location would have been $495, so roughly a $40 increase.

I was explained by the sales agent that all i needed was to fill out an application, pay a $50 application fee which is refundable if denied, and provide the last 2 pay stubs.  She also told me that they had a special that month which stated that all we had to pay was our security deposit and the first month rent is FREE so that was awesome. we went ahead a filled everything out, provided as much detailed information as possible in order to get in quickly before June 1st.   And paid the $50

Within 2 hours I was contacted and told that my application was denied because they require a credit score of 600 and mine fell shortly below that at 550 due to a past due credit card bill and also the fact that my credit report had been pulled quite frequently lately due to the obvious fact that i’m looking to move…. and that my $50 would return to me by check.   Now this confused me a little since i’ve never ahd any problems getting an apartment and as god as my witness i have NEVER been late on rent not even once, and my utilities are always paid on time as well..  yes I did let the credit card go for a few months and that was simply due to the fact that I was laid off my job and unemployed. I had to pay bills according to their importance which is always rent, food, utilities. so for those couple of month the credit card got behind.  This did not anger me as much until i was told the next day when i called back to ask more questions., that no other information on my application was even looked at, the credit score was the only thing considered. Now i understand that this is prefectly legal and propert owners have the right to deny anyone they want, but why ask for all this information if your not using it…..here is a copy of the letter I wrote to the owner of this company the next day….

To Whom it may concern:

I am writing this letter in regards to my recent application for rental on your properties.  My application was denied and I am not writing this letter to try and change your decision but merely want to inform you on how disgusted I am on the nature of its denial.. I was denied soley based on my credit score, which fell short by only 50pts of your required score.  This frustrates me because I was told that none of the other information on my application was even looked at, and had it be reviewed completely, your agent would see that I would be a perfect tennate as I have NEVER been late paying rent or expenses, I also fail to see why a credit score would be the main thing looked at on the application considering that I’m not applying for a mortgage or any equity in which cash would be lost.  The credit score was low, again only by 50pts due to a past due credit card account which has NOTHING TO DO WITH RENTING.  Had further investigation on the application been done as it should have been, like calling references, you would know that I always pay rent and utilities on time, every month, no exceptions.  This could have been easily verified by my current landlord, again had the application been reviewed properly.  Which i have to ask why do you even require an application, just ask people their credit score when they call for the appointment, save some time. I can certainly understand the need to REVIEW credit history, but I do not feel it should the deciding factor when renting.  The bottom line is if I were in rentals I would check past rent history, and verify employment/source of income, which if that had been done you would see that I make enough to pay your required rent of $495 per month, 2 fold, considering that between my fiance and I we have 4 sources of income generating about $3,000 per month.  If all that looks ok I would say go ahead move in, if you don’t pay me, out you go, its that simple. I also told the sales agent I would pay the first month rent even though your company was giving it away for free for new tennates, just as a sign of “good faith” But your office refused the extra income because of 50pts on a credit score that again HAS NOTHING TO DO WITH RENTING.  so from a business stand point  not that smart of a decision. Do you see how this style of business is flawed?  the economy being what it is today i’m shocked if anyone has “perfect” credit.. I am sorry you had to turn away an excellent, on time, quiet tennate because of a credit score.  have a nice day.

 

 

I think this use of credit scoring is wrong.