BetterNOI and Credit Reports

July 23, 2020

The difference between soft and hard inquiries on your report. What you need to know.

When applying for anything, whether it be a place to live, a car to drive, or a credit card, there is a 100% chance that your credit will be pulled. Sometimes, it is one bureau, sometimes they pull all 3 to get a cumulative score. Either way, unless you have a freeze, your credit report is being pulled.

Does BetterNOI pull credit?

In most cases, based on the client’s needs we do pull credit. The typical exception to that are Housing Authorities or Housing Commissions but it is also possible for a market-rate property to not request a credit report. At least 85% of our clients request a credit report before deciding on an applicant.

What is the difference in a soft inquiry and a hard inquiry?

Great question! Many people do not know or may not understand the difference between the two. Here is a breakdown below:

• Soft inquiry- This type of inquiry is typically done when prequalifying for a credit card, seeking employment, or other non-loan items. There is no impact to your credit score.
• Hard Inquiry – This type of inquiry is typically done when purchasing a home, buying a new car or when moving forward in the credit card process (once you prequalify). This can result in a 5-10 point drop on your credit score immediately. These inquiries stay on your credit report for 2 years before they fall off

If my background check is processed through you, is the inquiry a hard or soft hit?

Previously, when applying for a place to live, the credit bureaus classified the inquiry as a hard hit. Recently, TransUnion™ and Equifax™ have written articles that they are no longer classifying housing as a hard inquiry, but rather a soft inquiry. Experian™ has always been a soft inquiry.  You can read the articles by clicking below:

• Equifax Press Release
• Transunion Press Release
• Experian Press Release

Do you have instructions on how to obtain a copy of my credit report?

There are several options to obtain a copy of your report. If you’ve been denied credit when trying to rent a place to live, you will receive a phone number on your adverse action letter to call and get a code to reach out to the bureau to receive a copy and/or dispute incorrect information.

However, the easiest and most efficient way to stay on top of your credit is to visit www.annualcreditreport.com once per year for a FULL report of all three bureaus. From there, you can dispute any incorrect information directly with each bureau and have it corrected.

One more option is to download the apps Credit Karma™ or Credit Sesame™. These free apps give you a general overview, just not your full report. However, they do send you emails if something has been reported under your name and/or social and any new open accounts. This keeps you “in the know” while waiting during the year for your full reports.

Does BetterNOI or Screening Reports show on my credit report?

If you apply for a property that uses our system, you will see under “Inquiries” the words Screening Reports. However, keep in mind that this will always be the soft inquiry we discussed above with no impact to your credit score.

How do I sign up or get more information?

We would love to provide you a Zoom webinar to show you how our system works. Please reach out to Jason Montgomery by email, jmontgomery@betternoi.com for more information and to be connected to your Regional Account Executive.