The Approval Process (continued)

Large leasing companies generally have a business arrangement with a third-party consumer reporting agency (CRA). A CRA is a company that gathers and sells information on how a consumer pays rent and bills, whether or not the consumer has a criminal or civil court record, or has filed for bankruptcy. These companies use the information that an applicant provides and then checks the background of the applicant and provides the leasing company with a consumer report and a numeric score. The consumer report contains information from public record sources and other data furnishers which prospective housing providers and employers use to evaluate an applicant. A consumer report may also show whether or not a person has been sued, filed for bankruptcy, or has a criminal or civil court record. This score allows the leasing company to compare you with other applicants and gives the leasing company a forward-looking analysis of the overall risk of renting to a particular individual. The score is based on a statistical model used to predict a potential renter's ability and willingness to pay rent according to lease terms and conditions.