Why a Full Credit Report is Better Than a Credit Summary

RHAWA provides screening services for members. We encourage rental housing providers to screen all prospective adult tenants. 

Far more than a simple score, the RHAWA full credit report provides specific and complete details on an applicant's financial history. It allows you to determine their debt-to-income ratio and provides insight into their current level of financial responsibility, as well as past temporary hardships.  

When screening a prospective tenant, requiring them to fill out an application for tenancy is the most important step. Not only will you rely on this for checking credit and background information, but you will also need to have this on file if you decide to rent to them. Make sure that the information they provide is both legible and complete.  

The Fair Credit Reporting Act requires the applicant’s written acknowledgment to request a consumer report, which determines a consumer’s creditworthiness, credit standing, or credit capacity. Credit information and rental and employment verification information all fall under the definition of a consumer report. 

When you run tenant screening on prospective tenants, you are pulling information from a variety of sources. The criminal records* are pulled from a criminal records database; eviction records come from a statewide eviction records database. The applicant’s credit report and credit information come from the credit bureaus. When you order your tenant screening report from RHAWA, we wrap it all in one complete, easy-to-read report for you.  

RHAWA screening uses TransUnion to pull the credit information. The credit information for the prospective tenant is a soft pull from TransUnion, meaning it will not impact the prospective tenant's credit score. However, the report still provides housing providers with all the pertinent details they may need. This is especially important, considering all the changes that have taken place throughout Washington State.  

A credit report can help you determine a person’s financial responsibility. You might not feel a need to require flawless credit, but you may want to make sure that they are conscientious when it comes to repaying their debt. A report can tell you how much debt an individual has and what their monthly financial obligation is for repaying that debt. For example: loans and credit cards. The report can also tell you if they have fallen behind on payments and when. This information is necessary to determine the debt-to-income ratio and make sure that a prospective tenant can afford to pay the rent.  

Many screening companies offer credit reports without requiring a certification. They do not require a certification because they provide the housing provider with a “summary” report. The summary report does not include the in-depth information you will find in a full credit report. For example, they may show the applicant’s list of closed creditor accounts, but not provide the reason for why they have closed. This can be valuable information to determine if the applicant wasn’t paying on the accounts and perhaps the creditor had to close it out as a charge-off, or it went to collection, or perhaps it was a lost or stolen card. A summary report does not provide information about the credit accounts being in arrears and whether they were 30, 60, or 90 days past due. Whereas a full credit report gives full details of late dates and when the account becomes current in payments. These are just a couple of examples regarding key information missing from summary reports.  

Several cities throughout Washington and the State itself have put forth many new ordinances and laws related to screening. The RHAWA screening department ensures that housing providers are getting the details they need to make unbiased and informed decisions while complying with local laws that restrict certain details such as rent nonpayment during the COVID emergency and criminal history.  

RHAWA also offers a class on how to interpret the screening report. You can access it through ONDEMAND education on the RHAWA website. 

Don’t let the federally required Certification process deter you from having access to this important information. The RHAWA screening department can help you with this process. We can provide you with a complete and thorough consumer report that will meet your tenant screening needs. The certification can be completed in one day once all the required documents have been submitted. However, it is best to complete the Certification process as soon as possible. This will expedite the screening process when you have an application in hand and need to process it right away; contact us today! (206) 283-0816 or screening@RHAwa.org.

Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.