The Resident Score is a credit score developed by TransUnion specifically for the rental industry. It ranges from 350 to 850 and is designed to assess an applicant's risk as a renter. Resident Scores are specialized scoring models tailored to prioritize rental-related behavior, offering a more accurate predictor for evaluating tenant suitability compared to general creditworthiness.
Unlike traditional FICO credit scores, which encompass a broad range of credit behaviors, Resident Scores prioritize factors crucial for evaluating rental behavior, such as timely payments and responsible credit usage. This approach makes them a more precise tool for landlords when assessing prospective tenants.
The Resident Score considers:
Payment History: Both positive and negative payment history for credit lines.
Credit Usage: The amount of credit the individual is using compared to their available credit.
Credit History: The types of accounts and the length of the applicant's credit history.
Credit Availability: The total available credit limits.
Inquiry History: The number of recent credit inquiries, which indicate whether the applicant is seeking new credit. Additionally, factors such as open credit lines and the duration of credit account activity provide further insights that align with rental-specific considerations.
While the Resident Score is an essential metric, you should also review the full details in the TransUnion Full Credit Report to gain a complete understanding of the applicant’s financial history and potential rental risk. Furthermore, for a holistic assessment, landlords can combine Resident Scores with other screening tools, such as background checks or income verification, ensuring balanced and comprehensive tenant evaluations.