Reviewing a rental applicant’s credit report is a common tenant screening practice for landlords and property managers. A new update to TransUnion credit reports have made all tenant screening inquiries soft inquiries. This is exciting news for renters, landlords, and property managers.
Rentec Direct provides instant tenant screening report access, including TransUnion credit reports. This latest update means all Rentec Direct credit reports will now result in a soft inquiry for rental applicants and will not affect their credit score.
What is a soft credit inquiry?
A soft inquiry takes place when someone pulls a credit report as part of a background check process. Soft inquiries include tenant background checks for rental properties, employment background checks, or a credit check performed by a credit card company without your permission.
A soft credit inquiry will not affect your credit score.
What is a hard credit inquiry?
A hard credit inquiry occurs when a financial institution, like a lending company, bank or credit card company checks your credit when making a lending decision. Hard inquiries generally take place before getting approved for a mortgage, loan, or credit card.
A hard inquiry may lower a credit score by a few points.
Soft Inquiry Benefits for Renters
Landlords and property managers evaluate a renter’s credit score and credit history to make an objective decision of an applicant’s financial responsibility. Housing providers often have a minimum allowable credit score an applicant must meet as part of their tenant screening approval process. For someone who’s credit is near the minimum, avoiding any sort of activities that negatively impact a credit score is essential. So renters looking for a new home can feel assured that submitting a rental application that includes a background check will not affect their credit score.
Landlords and property managers may find it beneficial to market the fact that your background screening credit inquiries are soft credit inquiries. This will help your renter applicants feel more confident submitting a rental application and widen your pool of qualified applicants.
Tenant Screening with Rentec Direct
Rentec Direct offers instant access to several tenant screening reports so you can make an informed decision about approving the most qualified rental applicant for your property.
Screening Reports include:
- TransUnion Credit Reports from StartPoint
- Income Verification Reports
- County, State, and National Criminal Reports
- Inmate Records
- Sex Offender Reports
- National Eviction Reports
- SSN Validation Reports
- Bankruptcies/Judgments/Liens Reports
To learn more about tenant screening with Rentec Direct check out this article in the Knowledge Base – Tenant Screening: Credit, Criminal, Eviction, SSN Validation