What Credit Bureau Does Apartments Use?
There are many credit bureaus, but Apartments mainly uses Experian, Equifax, and TransUnion. Based on preferences, a landlord or property manager may decide to obtain credit reports from one or all of the major three credit bureaus and then use the credit score(s) to decide if a potential tenant is creditworthy or not.
The three credit bureaus are Experian, TransUnion and Equifax. Each bureau has its own unique process for obtaining credit reports from tenants. Experian: -You will need to provide your name, address and date of birth to begin the process. -Once you have provided all of this information, you will be asked to provide a credit score. -If you have a high credit score, Experian will give you a lower priority for tenant applications. -If you have a low credit score, Experian will give you a higher priority for tenant applications. -You can also view your credit report on their website or through their app. TransUnion: -You will need to provide your name and account number to begin the process. -Once you have provided all of this information, you will be asked to provide your social security number and date of birth. -After providing these details, TransUnion will ask about your current debt levels and other financial information that may be relevant to your application. -If you are approved for tenancy, TransUnion will send out an email notification with instructions on how to access your credit reports from each bureau.
Experian
Experian is the largest credit bureau in the United States. They obtain information about consumers from creditors and use this information to determine a consumer’s credit score. The Fair Isaac Company (FICO) Score 8 Model uses an algorithm that measures credit scores between 300-850. ..
When preparing a Credit report, landlords should also take into account personal information, employment, accounts, and inquiries when assessing the creditworthiness of potential tenants. This includes information such as personal information, such as addresses and contact information for employment.
Equifax
Equifax is the third largest credit bureau in the United States. It uses the same scoring model as Experian, which is the FICO Score 8. However, when it comes to listing accounts, Experian has a slight edge over Equifax. ..
Equifax’s method of account listing makes it more likely for debt to appear in consumers’ records unlike Experian that categorizes the information and this is why most Apartments prefer to obtain Credit Reports from Equifax.
TransUnion
The VantageScore Model uses a weighting method that is different from the FICO Score 8 Model.
Credit scores can vary significantly between different credit bureaus, even when the information they have about a consumer is the same. This can be due to a variety of factors, including how the bureau collects and processes data. ..
Cost of Obtaining A Credit Report
To obtain a free copy of your credit report, you must have a valid credit score and be in good standing with each of the three major credit bureaus. However, according to Federal Law, special cases such as job search, identity theft or fraud alert on your credit file, or the rejection of your application for an apartment, or any other benefit based on information in your credit report will allow you access to a free copy of your credit report.
In some cases, you may be able to access your credit report for a fee. You can either pay a fee to the credit bureau or grant your landlord access to view your report for 30 days. Alternatively, you can sign consent to have your landlord access your credit report on your behalf.
Credit bureaus are only allowed to charge $13.50 for a credit report. ..
The Accuracy of Credit Scores
Different credit bureaus use different models to analyze credit data, which can lead to discrepancies in a person’s credit score. ..
Credit bureaus get consumers’ data from creditors or they directly inquire about consumers themselves. Whichever method a credit bureau uses, there are bound to be some gaps in the information one bureau has from another since creditors may send information to only one or two out of the three major credit bureaus. Also, some credit bureaus may inquire far back into the credit habits of a consumer and update their information more frequently than another credit bureau. ..
The FICO Score 8 Model is a credit scoring model that is used by some credit bureaus to calculate consumers’ credit scores. This model differs from the VantageScore Model, which is used by other credit bureaus to calculate consumers’ credit scores. ..
Conclusion
When it comes to accessing the creditworthiness of prospective tenants, landlords have the final say. Credit bureaus can only help in preparing the credit report, from which the credit score is obtained but the decision as to whether your apartment application is approved or not rests on landlords. Reports from credit bureaus inform landlords’ decisions. ..
Credit reports are a compilation of information about your credit history and credit score. They can help you get a better idea of your credit worthiness, and can also help you find lenders who will offer you loans.
Credit reports typically contain two categories of information along with the credit score: identifying information, including name, address, Social Security number, date of birth, and then information about credit history, including, credit account information, hard and soft inquiries, collection account, payment history. The credit score essentially summarizes the credit history.
Do landlords review the entire credit report or just the credit score?
Some landlords prefer to review the entire report to spot things that question your creditworthiness. These could be late payments, recent hard inquiries, bankruptcy history, high debt payment amounts (in comparison to stated income). ..
Credit bureaus get applicants’ information by requesting it from lenders and other third-party sources. ..
Credit bureaus collect information from specific data providers, which can include creditors, debt collection agencies, vendors, or officers with access to public records. ..
