What is the difference between Credit and Resident Scores?

Help Center For Landlord Leasing Tenant Screenings

ResidentScore is precisely formulated for rental screening and is designed to provide a better estimation of risk to your future rental property income than a typical credit score. ResidentScore uses a sophisticated formula to analyze the credit report and produce a score between 350-850, with 850 being the best score possible.

This guide will help you get started with screening your prospective tenants today and utilize the ResidentScore screening tool to find the best tenants for your rental property: How do I screen a tenant?

ResidentScore Factors

The ResidentScore is generally made up of (5) five factors (actual score elements may vary based on specific tenants being scored):

  • Payment History
  • Credit Utilization
  • Credit History
  • Credit Availability
  • Inquires

ResidentScore is part of our screening process, designed specifically for tenant screening by TransUnion, and it is powered by a sophisticated analysis of more than 500,000 actual resident records.

The Significance of a ResidentScore

While a Credit Score is used to predict the likelihood of a tenant paying back a loan or a credit card balance, ResidentScore can help you predict overall rental performance and better understand the risks.

Here are the benefits of ResidentScore over a standard Credit Score:

  • ResidentScore identifies 15% more evictions and 19% more skips than other typical credit score models
  • ResidentScore scores more applicants who have thin files (can score all applicants with at least one account on their credit report)
  • ResidentScore is built specifically to identify the likelihood of eviction

When looking at prospective tenants, you need the information to help you make the best possible leasing decision so you can generate consistent rental income and avoid the expensive costs associated with evictions. A credit score may help you, but our integration of the TransUnion ResidentScore model provides information for our rental screening customers tailored to the rental industry's unique needs.

Rather than being stuck with a scoring system based on the same algorithms that a bank would use to determine the likelihood of a loan being paid back, ResidentScore gives landlords pertinent information about rental applicants, specifically, the reliability and level of risk for eviction they may bring.

 

 

Last updated:
Apr. 22, 2024

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