When you run a credit screening through RentEngine Applications, the report includes a TransUnion ResidentScore in the Credit report. Here's what it is and how to use it.
What Is the ResidentScore?
The ResidentScore is a screening score built specifically for rental housing. Unlike a traditional credit score, which is designed to predict whether someone will repay a loan, the ResidentScore is designed to predict the likelihood of a negative rental outcome — such as an eviction.
Scores range from 350 to 850, with 850 being the best possible score. According to TransUnion, ResidentScore predicts evictions 15% more often than a typical credit score in the bottom 20% score range where risk is greatest.
What Goes Into the Score?
According to TransUnion, the ResidentScore is generally made up of five factors, though the specific elements may vary by applicant:
Payment history — track record of on-time payments
Credit utilization — how much of their available credit is being used
Credit history length — how long their accounts have been open
Credit availability — total credit available across accounts
Recent activity — new accounts, inquiries, and other recent changes
How to Use It
The ResidentScore gives your team a rental-specific risk signal that goes beyond what a traditional credit score tells you. It's especially useful for applicants with thin credit files who might not generate a standard score but still have enough account history to receive a ResidentScore.
Use the ResidentScore alongside the rest of the application — income verification, criminal and eviction reports, and references — to make a well-rounded decision.
For more information, visit TransUnion.com