FCRA approves Landlords request for a Landlord Credit Report before accepting a plea for rent or issuing loan. This report containing every minute details of the economic condition of the applicant helps landlords to understand how safe it will be if the particular applicant occupies a part of his property on a regular rent.
Landlord Credit Report highlights the positive and negative sides of a person's financial health and gives a fair picture of his overall status, including his paying potential. Landlord Credit Report is broken into the following four major sections with other relevant information:
Section 1: The first part of a Landlord Credit Report covers the personal details of a consumer including contact details, past and current residential address, employment status, age, social security number etc.
Section 2: In order to help landlords identify frauds, this section covers wrong information like SSN etc., given by consumers. This section is compiled after cross checking the particulars given by the consumers with the Credit bureau's own database.
Section 3: This is the most crucial part of a Landlord credit Report covering information like total monthly expense, monthly payment for loan repayment, total no. of tradelines, total installment and real estate balance, no. of inquiries made in the past.
Section 4: Credit Scores is a number that helps Landlords to measure the risk factors associated with a particular consumer. Landlord Credit Report with high Credit score is considered to be good and safe enough.
FCRA has authorized three credit bureaus called Equifax, Experian, TransUnion for issuing Landlord Credit Report, as and when requested.