There are private credits reporting agencies that collect credit files and other consumer information and sell them. Landlords can get the credit report of their tenants through these agencies. Landlords need to know their tenants’ credit reporting to determine if the tenants are responsible enough to pay the rent diligently. High credit scores mean lesser risk for the landlord.
Through investigating the credit report, the landlord will know if a prospected tenant has ever filed bankruptcy in the past or if the tenant has been delinquent or late in paying bills, loans and other payment. This will also help the landlord determine if the tenant has been convicted or arrested in any state before. Credit reports will also show information about the tenant being evicted before, been charged by any lawsuit, or if he or she is financially stable with a good credit history capable of paying the rent.
In order to check the credit report, the landlord should ask for the tenants name, address, Individual Taxpayer Identification Number, or Social Security number. This information is usually jotted down when filing the rental application form.
The big bureaus that lead the credit reports market are Equifax, TransUnion and Experian. However, a landlord can’t order directly from them. Landlords should work with agencies and tenant screening service providers. You can search for these agencies in the yellow pages or just Google them. You may have to pay a small fee for these credit checks. There are other states that make it legal for the landlord to charge tenants $30 to $50 for the credit check.
To make sure that you get the right credit reports and you do the right action for your future tenant after investigating his or her credit report, it would be best to consult a lawyer for proper information. Get the best lawyer for the same, fill the FORM right away available on the right of your screen.