Bad Credit does not = bad Tenant, just saying... (rentals, HOA)

[A-Tex]

Originally Posted by austin-steve

What's your credit score? I want to know if you have credibility to be lecturing others about how we run our businesses and evaluate risk.

You'll notice all the people who are crying about it not being fair are those who don't have the assets that would be put at risk.

[Novacek]

Originally Posted by radiolibre99

More drivel. It seems as though you presuppose a lot of stuff about people with bad credit. How convenient that when you use the outdated and flawed measure of credit as a way to select a tenant, you're just using executing your rational self interest as a landlord. But everything else a person does is put under the scrutinity of personal accountability. Apparently every person should have a crystal ball to foresee thr results of every decision they ever make. And you guys admit to stuff that are out of people's control but still use the credit score as one of the overall determinative measures? So during that time of repair someone (even for things they you admit might be out of their control) should have to be put under a grinder in order to learn some personal accountability and satisfy some yard stick litmus test. Isn't income enough? Ability to pay. Don't you run the risk with any tenant? Computers don’t care about special circumstances. Everything is either black or white. There isn't a darn bit of consideration of a person’s basic character or allowance for the fact that people can change their lives and their behaviors. A computer looks at data and assigns a number. Negatives stay on your credit report for seven years or longer. Is that how long a person has to rely on this tough love approach to get back on a lenders or a landlords good graces?
All you did was assume that bill here wasn't paid so that means they're risky person lacking accountability. No grey area. "If something happened then they should've been more careful and it's not my responsibility as a landlord to take them in. I don't run a charity. I look at the facts of a black and white report and if there is an error that was out of their control then tough luck that's life, get to the end of the line and crawl your way back."

It's not black and white. It's a sliding scale. There's a lot of levels between "horrible credit" and "absolutely perfect".

[radiolibre99]

Originally Posted by A-Tex

You'll notice all the people who are crying about it not being fair are those who don't have the assets that would be put at risk.

Yet every decision you guys make to protect those assets is seen as fair and in your rational self interest. Any notion to the contrary and it's akin to a thief rationalizing his behavior or something in that ballpark to y'all. At least that's how I feel you guys look at it.

[austin-steve]

Originally Posted by radiolibre99

My point is you think you're being rational in how you people evaluate risk even in the light of people questioning the validity of the credit rating system. Instead you guys run more on presumptions about people than anything else. A carefully constructed narrative.

You didn't answer my question, so I'll assume your FICO is in the 500s. Congratulations. I'm sure it's not your fault.

When you own some rental property, you can develop your own risk calculator and use it for your own properties. Until then, read all the Dave (whats his name? - finance guru who helps working class people be smart with money?) that you can and do what he says. He's a partial scammer (sells a lot of product) but the content of his messages are spot on for people who just need to stop making bad decisions. dave Ramsey ... that's his name. Call him up and gripe about landlords and he'll straighten you out.

Steve

[radiolibre99]

Originally Posted by austin-steve

You didn't answer my question, so I'll assume your FICO is in the 500s. Congratulations. I'm sure it's not your fault.

When you own some rental property, you can develop your own risk calculator and use it for your own properties. Until then, read all the Dave (whats his name? - finance guru who helps working class people be smart with money?) that you can and do what he says. He's a partial scammer (sells a lot of product) but the content of his messages are spot on for people who just need to stop making bad decisions. dave Ramsey ... that's his name. Call him up and gripe about landlords and he'll straighten you out.

Steve

Let me put this into words that you can probably understand:

I am specifically talking about the FICO score. While Fair Isaac licenses its highly secretive technology to point out a person’s potential for future trouble, any human can review and assess a credit report. It shouldn't take this software to see if someone has the potential to go bad. Lenders and landlords are relying too heavily on scoring factors alone. As I said earlier, the software doesn't take into consideration consideration a person’s basic character or allowance for the fact that a person can change their lives and their behaviors. And if I understand it's business model correctly: Fair Isaac sells its products and services to companies that issue personal lines of credit. I believe I read at one that it boasted to influencing as much as something close to 13 billion credit decisions each year and has sold more than 10 billion FICO scores since the 80s. I think to achieve a high credit score; Fair Isaac has programmed its scoring model to require multiple open lines of credit. It creates the problem for consumers who don’t have enough credit, charges them a fee to diagnose the credit score, and then prescribes a remedy which is…get this…acquire more credit, which sends that consumer to the very industry that creates Fair Isaac’s income stream.


I am not saying you can't use the credit report to evaluate risk but should it be the over-determinant factor? No.



And just because you own property doesn't mean you get to fundamentally do what you want and that every decision you make is in your rational self interest so it shouldn't be scrutinized.

[menono]

I could understand medical debt. I cannot understand credit card charges. Chapter 7 is a big deal. I am sorry you have gone through this, but we have to deal with where we are in life and just try to make it better.

[CSD610]

Originally Posted by austin-steve

What's your credit score? I want to know if you have credibility to be lecturing others about how we run our businesses and evaluate risk.

Are you his landlord? No? Then why it is your business?
How you run your *business* is archaic and I'm sure will remain so and I personally laugh at any landlord who did not rent to me because I have no credit/fico score and they did not ask why either. They
ASSumed the reason was something sinister but it wasn't, no big deal to me, I would rather give my money to someone who is/was not a greedy nosy twitt who bothered me all the time.

[radiolibre99]

Originally Posted by CSD610

Are you his landlord? No? Then why it is your business?
How you run your *business* is archaic and I'm sure will remain so and I personally laugh at any landlord who did not rent to me because I have no credit/fico score and they did not ask why either. They
ASSumed the reason was something sinister but it wasn't, no big deal to me, I would rather give my money to someone who is/was not a greedy nosy twitt who bothered me all the time.

Yes, exactly. These guys think they're running their business with the highest standards of risk evaluation. It is merely the rational pursuit of protecting their interests according to them. Can't fault them, they say. But everything else is on you. They run the risk of renting to any tenant. That is their risk as a landlord but they think they're limiting that risk by relying on such shoddy almost scammish reporting. Then they have the nerve to pass judgement and say it's all about personal accountability. LOL. Buzzwords.

[MrCurmudgeon]

Originally Posted by radiolibre99

Let me put this into words that you can probably understand:

I am specifically talking about the FICO score. While Fair Isaac licenses its highly secretive technology to point out a person’s potential for future trouble, any human can review and assess a credit report. It shouldn't take this software to see if someone has the potential to go bad. Lenders and landlords are relying too heavily on scoring factors alone. As I said earlier, the software doesn't take into consideration consideration a person’s basic character or allowance for the fact that a person can change their lives and their behaviors. And if I understand it's business model correctly: Fair Isaac sells its products and services to companies that issue personal lines of credit. I believe I read at one that it boasted to influencing as much as something close to 13 billion credit decisions each year and has sold more than 10 billion FICO scores since the 80s. I think to achieve a high credit score; Fair Isaac has programmed its scoring model to require multiple open lines of credit. It creates the problem for consumers who don’t have enough credit, charges them a fee to diagnose the credit score, and then prescribes a remedy which is…get this…acquire more credit, which sends that consumer to the very industry that creates Fair Isaac’s income stream.

There are literally trillions of dollars staked agains those scores. If they were "meaningless" or "wrong", rational lenders wouldn't use them to help make decisions. Can they be improved? Sure. Can other information be considered alongisde? Sure. But if they were as flawed as you and others would suggest, self-interested lenders of capital would use something else, because they don't want to take poorly understood risks, or leave money on the table.

And just because you own property doesn't mean you get to fundamentally do what you want and that every decision you make is in your rational self interest so it shouldn't be scrutinized.

Those with skin in the game get to call the shots, whether you like it or not. If you think it so unjust, feel free to loan out money or otherwise expose yourself financial counterparties as you see fit.

[MrCurmudgeon]

Originally Posted by CSD610

Are you his landlord? No? Then why it is your business?
How you run your *business* is archaic and I'm sure will remain so and I personally laugh at any landlord who did not rent to me because I have no credit/fico score and they did not ask why either. They
ASSumed the reason was something sinister but it wasn't, no big deal to me, I would rather give my money to someone who is/was not a greedy nosy twitt who bothered me all the time.

Having no FICO score is much better than having a bad FICO score.