Frequently Asked Questions About Credit Scores
- Why do we check your credit?
- How important is my credit score?
- Where can I obtain information about my credit history and score?
- What kind of score do we use?
- How can I improve my credit score?
Credit checks are a standard practice in our industry. Most apartment owners and landlords now perform credit checks on all applicants, and charge application fees in varying amounts. Although we are not extending credit, we are entrusting you with a residence that has a great value. Think about it this way, would you hand over the keys to your car to a complete stranger?The credit report and other reports are also used to verify the information provided on the rental application.
Your credit score is not our only consideration. We will also consider you income level, we will perform a criminal background check, examine your rental history, and perform a social security trace (identity verification). However, your credit history is an important consideration. A credit score is used as an indication of Risk, or your willingness and ability to pay your rent and other obligations.
The Federal government passed a law that requires credit reporting agencies to provide you one free credit report a year. You can obtain your credit report FREE at:
www.annualcreditreport.com OR 1-877-322-8228
Please be careful of other websites that claim to offer FREE credit reports, this is the official website established by the credit bureaus in response to FTC regulations. Other sites will attempt to sell you various credit services. Your credit report is available free of charge, however, you will have to pay to get your credit score.
Additional information about your credit report & credit score can be obtained from the Fedreal Trade Commission at:
www.ftc.gov/credit/
We use the FICO credit score in our evaluation. You should be aware that there are several different credit scoring models available. It is important when considering your credit score that you know what scoring method was used. There can be a vast difference in your score depending on the scoring system used. For example, a FICO score of 650 is not equivalent to a Vantage score of 650.
If your FICO credit score is below 630, your are generally considered a “high risk” and you need to work on improving your credit score. For tips on improving your score, visit www.myfico.com; www.creditscoring.com, or www.annualcreditreport.com.
