The Credex Score specifically scores the applicant to determine their suitability as a tenant.
There are 3 components to the score: application, affordability and squat which wrap up into the overall Credex Score. Depending on which score (basic, silver or gold), the different components (application, affordability and squat) are included.
image | Application | Rates the tenant applicant into 5 buckets - poor, below average, average, good or excellent. |
Affordability | Calculates if the tenant can afford the rent based on the inputted rent and salary data |
Squat | Assesses the probability that the applicant will not only default but will not vacate the property and will incur a minimum of 4 months in a row of non-payment. |
Additional information is required to perform the Silver and Gold Credex Score - the value of the rent and if there are multiple tenants, that applicants contribution towards the rent, and the applicant’s salary.
Important considerations:
The score is based on the data available – the more credit bureaus requested the better the predictability of the score. In other words the score is most predictable when a TPN, TransUnion and Experian enquiries are requested
The overall Credex Score is a wrap up of application, affordability and squat component; the Basic Credex Score does not include the affordability and squat components and as such the applicant will never score in the excellent bucket as the input data is limited.