FAQ: How is a Resident Score Calculated?
Elements of the Resident Score
Here we will break down each section of the Resident Score and how it factors into the final score:
- 30% - Payment History - Someone's personal track record of paying bills on time.
- 26% - Utilization - The amount of available credit being used by someone.
- 21% - Credit History - Credit Performance over time.
- 13% - Credit Availability - Magnitude of credit extended to someone.
- 10% - Inquiries - Information related to someone's credit seeking behavior.
Also, the rental industry calculates risk using different predictors than the credit industry.
- Insurance Risk Model - Predicts likelihood of an insurance claim
- Mortgage Risk Model - Predicts likelihood of foreclosure
- Resident Risk Model - Predicts likelihood of a negative rental outcome i.e. risks of an eviction, late rental payments, and/or insufficient funds.