Credit checks using Cozy

7 Replies

I see lots of people use cozy to run credit and checks on potential tenants. Does Cozy only provide a credit report from Experian? I thought it was good practice to check credit reports from all 3 bureaus on tenants.

Most of the online credit check services have a partnership with one of the credit bureaus. Ideally you'll want an option that  allows you to get a deeper look into their credit profile (credit history, breakdown of their credit score, accompanying remarks) as well as other parts of that report pull (ie. nationwide criminal background check, eviction history check, sex offender registry check, etc). Experian has also ran into quite a few security issues in the past which is a good reason to consider on of the other major credit bureaus like TransUnion. I hope this information helps! @Alexis Marie

I have used rent prep in the past and like it a lot.  It gives a lot more details if you choose the correct option. 

@Alexis Marie short answer is no, you don't generally run all three bureaus. They are all reporting similar information. Any screening company like RentPrep for example is using one of the three major bureaus. RentPrep uses TransUnion. 

There is two ways to run credit reports. Each service uses one of the two:

1. Landlord pull. The landlord gets a signed release from the tenant. The landlord uses that permission to pull the report and pays the bureau. The landlord usually collects money from the applicant. Since the landlord is pulling the report, it is a hard pull on the tenants credit and can negatively affect their credit score. It also obligates the landlord to credit protection law compliance.

2. Tenant pull / share with landlord. This is what Cozy uses. The tenant pays directly and the tenant pulls their own report. The tenant sees it first and shares it with the landlord. When it is shared, the landlord sees it through Cozy. The advantage of this method is that the tenant knows exactly what you see and the landlord is not in the middle of consent or compliance to credit reporting laws. Since the tenant pulls it, the report is a soft pull and therefore doesn't negatively affect their credit score.

Regardless of which service you use, how you analyze the report is most important. Some services analyze it for you and give recommendations. I prefer to use my own analysis.