Fair Housing

A Montana property manager who requires credit scores above 700 for all applicants should be aware that:

ACredit score requirements are always permissible as objective financial criteria
BHigh credit score requirements may have a disparate impact on protected classes and should be justified by actual credit risk data, with a minimum that is appropriate for the rental price point✓ Correct
CCredit checks are prohibited under the Montana Human Rights Act
DOnly income verification, not credit checks, may be used for tenant screening

Explanation

While credit score requirements are generally permissible, an overly high threshold (beyond what is justified by the financial risk of the rental) could have disparate impact. Requirements should be reasonably related to the legitimate business purpose of ensuring payment.

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