To assist you in screening potential tenants, TransUnion, Equifax, and Experian—the three major credit bureaus—offer consolidated reports. We’ve listed the key distinctions between these services as well as one tenant screening technique that is quick, simple, safe, and cost-free for landlords and rental agents. But which is the greatest?
When screening prospective tenants, you need reliable and unbiased information about them to make an informed decision. Although you have the option to believe an applicant when they say they’re a great tenant, doing so carries a risk that could cause you a lot of headaches in the future.
To better evaluate applicants, landlords use whatâs known as a tenant screening report. This sheds light on a rental applicantâs financial and rental history. These reports can assist property owners and rental agents in determining any hazards that tenants might present to the building and any possible maintenance problems they might bring about. Because there are so many different kinds of reports available, you should determine which one is best for you by understanding what each report includes and how simple it is to understand.
Moving into a new apartment is exciting, but it can also be stressful. One of the things that can add to the stress is the credit check Landlords often use credit checks to screen potential tenants, and they may use one of the three major credit bureaus: TransUnion, Equifax, or Experian
In other words, the type of credit score that landlords consider varies depending on the individual landlord. Some landlords use TransUnion, some use Equifax, and some use Experian. There is no one-size-fits-all answer.
However, there are some general trends. According to a recent study by Experian, landlords are more likely to use TransUnion than the other two bureaus. This is because TransUnion provides a special credit report for landlords that includes additional information, such as rental history and eviction data.
What Can You Do to Prepare for a Credit Check?
If you’re planning to apply for an apartment, there are a few things you can do to prepare for the credit check:
- Check your credit reports: You can get a free copy of your credit report from each of the three major credit bureaus once a year. You can order your reports online at AnnualCreditReport.com.
- Dispute any errors: If you find any errors on your credit reports, you can dispute them with the credit bureaus.
- Improve your credit score: There are a number of things you can do to improve your credit score, such as paying your bills on time and keeping your credit utilization low.
What If You Have Bad Credit?
If you have bad credit, you may still be able to find an apartment. However, you may have to pay a higher security deposit or rent. You may also want to consider getting a co-signer.
The credit score that landlords look at can vary depending on the landlord. However, TransUnion is the most commonly used bureau. If you’re planning to apply for an apartment, it’s a good idea to check your credit reports and dispute any errors. You should also try to improve your credit score as much as possible.
Additional Resources:
- Experian: https://www.experian.com/blogs/ask-experian/
- TransUnion: https://www.transunion.com/credit-help
- Equifax: https://www.equifax.com/personal/education/credit/
Frequently Asked Questions:
- What is a credit score? A credit score is a number that represents your creditworthiness. It is based on your credit history, which includes information about your past borrowing and repayment behavior.
- What is a good credit score? A good credit score is generally considered to be between 670 and 739.
- What is a bad credit score? A bad credit score is generally considered to be below 620.
- How can I improve my credit score? There are a number of things you can do to improve your credit score, such as paying your bills on time and keeping your credit utilization low.
- What if I have bad credit? If you have bad credit, you may still be able to find an apartment. However, you may have to pay a higher security deposit or rent. You may also want to consider getting a co-signer.
What is a tenant screening report?
A tenant screening report includes information that helps you learn about potential tenants before accepting their application. These reports contain personal data, such as name, address, Social Security number, and date of birth. It considers an applicant’s past credit history, current debts, payment history, credit application activity, and financial situation, all of which can indicate whether or not they will be able to make rent payments on schedule. Credit bureaus occasionally obtain data from housing lenders, federal and private student loan providers, and other sources to determine an individual’s financial situation.
A tenant’s complete credit history, including information on current loans, credit card accounts, past due and delinquent payments, a credit score, and rental history tracking, is also included in tenant screening reports. Certain reports provide a residential score that includes information on rental history, landlord recommendations, tenancy verification, income verification, and possibly even criminal and eviction history.
Itâs important to note that credit bureaus do not all calculate an individualâs credit score the same way. This is due to the fact that not all lenders, credit card companies, and other trade lines provide information to all three bureaus. TransUnion credit scores, for example, are based on the VantageScore® 3. 0 model, which evaluates a tenant’s creditworthiness, is what property managers and landlords should be aware of. The Fair Isaac Company (FICO®) score model is utilized by all three credit bureaus and is primarily used to assess personal loans, mortgages, and auto loans. Although it provides a good overview of a tenant’s payment history and creditworthiness, the VantageScore is more accurate in this regard.
How do I request a tenant screening report?
You can request a tenant screening report from the three major credit bureaus: TransUnion, Equifax, and Experian. These companies collect, analyze, and disburse credit-related information. Each of the credit bureaus will ask you to start an account with them. In order to accomplish this, go to each website and complete the contact form so that they can initiate your account and get in touch with you.
Your potential tenant will sign a release during the application process that permits you to request a tenant screening report. This release must include the prospective tenantâs full name with a middle initial and social security number. You can then enter this via your account on the credit bureaus websites. When a tenant applies, they enter their information and sign a release if you manage the application and tenant screening process with RentSpree.