Consumer complaint received 2019-10-18
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Experian Information Solutions Inc. (CA)

On XX/XX/2019, I was first in line to apply to RENT a one-bedroom townhouse for {$1300.00} per month through a management company, XXXX XXXX XXXX in XXXX CA. I paid them {$40.00} to do a tenant screening ( which I knew included a credit check ). XXXX uses XXXX ( a software / credit checking service in XXXX XXXX CA ) and by their own admission, lets XXXX decide the parameters for conducting a credit check. XXXX utilizes FICO Score 2 -- somewhat outdated, but more importantly, a MORTGAGE credit check to check potential rental tenants. 

XXXX was slow and incomplete. Although they knew I drove over an hour to view the property, when they insisted I do so, they could not operate the lock box and I was unable to view the interior. Nevertheless, I called and emailed XXXX 's agent, and timely submitted additional information to complete their screening, including a total of 16 bank statements, my own FICO scores, etc. 

Please note I have a perfect rental history ( for {$1700.00} a month for over 3 years ), make over 3 times the rental amount per month, and have a FICO Credit Score 2 of XXXX, recorded in XX/XX/2019. After being rejected by XXXX through a one-line email, I called XXXX at XXXX 's suggestion. 

XXXX ran my FICO Score 2 on XX/XX/2019 through their admittedly " lower algorithm method '' and it recorded at XXXX. Although XXXX never said their cut-off was XXXX for a primary tenant, if you opt to have a co-signer, that co-signer 's credit must score at 650 or higher. Then, of course, XXXX told me to get back in touch with XXXX. XXXX said it didn't seem right that it would have recorded so low. 

Additionally, because XXXX utilizes the FICO Score 2 method, that method creates a " hard pull '' on one 's credit. The effect of that is to lower the entire FICO score ( i.e. a regular FICO '' Score 8, etc ) on one 's credit, and seriously stifling the rental application process for any other place you might apply for in its entirety. None of this is disclosed on XXXX 's site nor on the XXXX online application provided. 

I wrote a serious letter to XXXX about their reliance on a MORTGAGE credit score pull for a rental property. But XXXX refused to re-run the check or to honor ALL of my other perfectly adequate scores, and said the Owners simply chose another applicant. Sure. 

I am unclear on whether CA law prohibits the " wrong '' type of FICO scoring when credit checking prospective tenants. Seems like it should. Thus, I raise this for ( a ) consumer awareness generally and ( b ) to highlight an unfair and disadvantageous practice done by management to prospective tenants. 

Here, there was no silver lining, as I had my heart set on this complex, having researched it and carefully watched for openings for over a year, meticulously protected and boosted my credit scores for months. When I finally found the perfect place, it was swiped from me by the lowest " algorithm '' designed for mortgages. Even if the next perfect place was " around the corner, '' or I was hard-pressed to rent something, my credit scores are now seriously compromised! This practice must be curtailed as patently unfair.