THE CREDIT CLINIC 

?????????? INFILE, DATE RPTD, SSN ????????????

 Your applicant’s credit file consists of several different parts. The top line of the credit report shows INFILE with a date below. That date shows when the applicant’s credit file was opened at the credit bureau.

 Next, you will find the personal information section.  This lists the applicant’s full name and any Also Known As or spelling variations of the name. It usually includes the last three addresses reported to the credit bureau. After the first two address there is usually a date indicating when the address was originally reported to Trans Union Corporation. You will find these to the right of the addresses underneath DATE RPTD.  These addresses are not verified, and often contain typographical errors due to operator input.  However, they may act as “footprints,” offering valuable information about where your tenant has been living (or reported to be living) for the past two or three years.  It is always a good idea to compare the addresses on the credit file with those on the rental application.  Ask your tenant about any unreported addresses. 

To the right of the personal information section, you will generally see SSN (social security number) and BIRTH DATE. 

 Sometimes, you will also see EMPLOYMENT information listed under the address details.  This, like the address information, is not verified information.  It has simply been provided to Trans Union Corporation by creditors who have requested a report. There may or may not be a date indicating when this information was reported.

 Obviously, this section of the credit report contains a wealth of good information.  However, it should be considered only a “jumping off” point for complete tenant screening, as all the information needs to be verified. 

PR=1 COL=3 NEG=1 HSTNEG=1-3 TRD=5 RVL=3 INST=2 MTG=0 OPN=0 INQ=12

 Ancient Hieroglyphics? Hi-tech computer jargon? Greek? No—just a few of the abbreviations you will find on nearly every credit report you obtain on an applicant.

 These abbreviations appear in the Credit Summary section located after the personal information section found at the top of each credit file.

 PR= The number of public records for the applicant (bankruptcies, liens and judgments).

 COL= The number of items actually placed with collection agencies. 

 NEG= The number of tradelines currently reported with a past due status.

HSTNEG=There will be two numbers here.  The first number indicates the number of tradelines with a history of negative payments.  The second number is the total number of negative occurrences for all tradelines with negative history.

 TRD =The total number of trade accounts.

 RVL=The number of revolving trade accounts.

 INST=The number of installment trade accounts.

 MTG=The number of mortgage trade accounts.

 OPN=The number of open trade accounts (examples include trade items such as gas cards and American Express).

 INQ=The number of inquiries made into this person’s credit file.

 These listings will be different on each file. A zero in all of the first four items listed above would be good news indicating no credit items in default currently or previously.

 READING BETWEEN THE LINES!

Every credit report tells a story…When screening your prospective applicants, the credit report can be your most valuable tool.  It is not simply a bunch of numbers and symbols—it tells a very interesting story! As the potential landlord for this applicant, you should not hesitate to play “Sherlock Holmes” with the credit file.  Here are just a few of the “clues” you may run across: 

-          Information which does not match that listed on the application. For example, the last three addresses and employer information (as reported by creditors), SSN and DOB of applicant.

-          Additional names (AKA’s), different spellings, middle initials, etc.

-          Recent bankruptcy filings (debts may be un-discharged; new debts such as YOUR RENT may be added).

-          A relatively new credit file for someone who is old enough to have a longer credit history.

-          Signs of potential bankruptcy or default, such as numerous unpaid collections and judgments.

 These are just a few areas to be made aware of.  You may also notice certain patterns, such as several late payments during an isolated time period, or a “group” of medical collections seemingly related to one another.  On the other hand, the pattern may indicate widespread abuse over a long period of time.  These are all things to be taken into consideration when making your final rental decision.