Pay Extra Close Attention to Collections on a Credit Report 3 A common mistake landlords make is focusing only on whether an applicant meets a minimum credit score. It is equally important to review the collections section of a credit report, which shows whether the applicant owes a debt to a collection agency. In many cases, the report will also list the original creditor. Debts originally owed to property management companies, LLCs, or individuals may indicate unpaid rent. In most states, housing providers can still report rent related debt even if it did not result in an eviction judgment. Other concerning collections may include unpaid utility bills or payday loans, which can signal difficulty keeping up with monthly obligations. Review whether the debt has been paid and how long ago it occurred. In some cases there may be an explanation, but collections still provide valuable context about an applicant’s financial history.
COLLECTIONS STILL PROVIDE VALUABLE CONTEXT ABOUT AN APPLICANT’S FINANCIAL HISTORY.
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