Credit Requirements

Photo ID Required

What it controls: Whether applicants must provide government-issued photo identification.

Default Setting: Yes

Recommendation: Keep this set to "Yes." While Fair Credit Reporting Act (FCRA) requires some form of identification verification, photo ID is the industry standard.

Note: You can set this to "No," but you'll still need to verify identity through other means.

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One Adult Must Have Credit

What it controls: Whether at least one adult applicant must have an established credit history.

Default Setting: Yes

The "No Credit = Good Credit" Debate:

Some believe no credit history equals good credit. Our position:

❌ No credit ≠ Good credit ✅ No credit = Unknown risk

Analogy: Would you rather ride with a driver who's had their license for a year, or someone who doesn't have a license? With one, you know their track record. With the other, you don't.

Your choice: You can set this to "No" if you prefer to accept applicants with no credit history.

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Average Credit Score

What it controls: Minimum acceptable credit score for approval.

Default Setting: 600

Range: 350-850 (full Vantage Score range)

Common Range: 550-650 for most property managers

Bankruptcies

Chapter 7 Bankruptcy

What it is: Complete discharge of debts (liquidation)

What it controls: How long after discharge before you'll consider applicants.

Default Setting: 90 days

Range: 1 day to any number of years

Reasoning: Debts are eliminated, giving the applicant a "fresh start." The 90-day buffer ensures the discharge is complete and financial recovery has begun.

Chapter 13 Bankruptcy

What it is: Debt restructuring with a repayment plan (typically 3-5 years)

What it controls: How long after filing before you'll consider applicants.

Default Setting: 1 year

Range: 1 day to any number of years

Reasoning: The applicant is actively repaying debts. One year demonstrates they can maintain the payment plan while also affording rent.

Adjusting Timeframes

More strict (longer timeframes):

• Higher risk tolerance needed

• May reduce your applicant pool

• Consider fair housing implications of strict policies

Less strict (shorter timeframes):

• Useful for affordable housing or second-chance rental programs

• Some clients set to "1 day" to effectively ignore bankruptcy status

• Example use case: Properties working with transitional housing programs

Legal Note: These defaults are based on HUD guidance. Consult your attorney for your specific market and risk tolerance.