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Understanding Credit Reports

This article explains how credit reports are used within Two Dots screenings, what information appears in a credit report, and how to interpret results.

Written by Georges B.
Updated over 5 months ago

What Is a Credit Report?

A credit report is a detailed record of an applicant’s financial history, compiled by major U.S. credit bureaus (TransUnion, Experian, Equifax). It typically includes:

  • Open and closed credit accounts

  • Payment history and delinquencies

  • Outstanding balances

  • Public records (bankruptcies, liens, judgments)

  • Credit inquiries

This information helps leasing teams evaluate the applicant’s likelihood of meeting rent obligations.

How Two Dots Uses Credit Reports in Screening

Once an applicant completes ID verification and provides consent, Two Dots automatically:

  1. Requests the credit report from our credit bureau partner

  2. Retrieves it securely

  3. Analyzes the credit data alongside ID and income verification

  4. Makes the report available in the Documents section of the applicant’s profile

Key Sections in a Credit Report

Leasing agents will typically see:

1. Personal Information

  • Name

  • Date of birth

  • Addresses

2. Account History

  • Open and closed accounts (credit cards, loans, mortgages)

  • Payment behavior (on-time, late, or delinquent)

3. Public Records / Collections

  • Bankruptcies

  • Liens

  • Judgments

  • Unpaid collections

4. Inquiries

  • Displays credit checks

  • Rental screenings are soft inquiries and do not affect credit scores

Common Credit Scenarios

No Subject Found

  • No credit history on file

  • Common for young applicants, first-time renters, or international applicants

Insufficient Credit Score

  • Credit profile exists but lacks enough history to generate a score

  • Seen with limited or new credit accounts

Foreign Applicants

  • Often show No Subject Found or Insufficient Credit Score

  • May need to be evaluated based on rental references, income, or other screening data

Summary

Credit reports are a critical tool for assessing applicant risk. Understanding the nuances, such as missing credit history, low scores, and international applicants, helps leasing agents interpret results accurately. Always review credit data alongside income verification and rental references to make well-informed leasing decisions.

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