When we complete a reference, we are provided with a risk score by Equifax that is shown on the report.
Equifax advises that the score is designed to 'assess the likelihood of a consumer defaulting on a new account within a predefined period of time from its opening'. The score runs from 0-500, and the lower an individual's score, the greater the probability (according to Equifax's data) that someone with financial characteristics similar to that individual is likely to fail to meet a financial obligation within a given time period.
It is important to note that the score deals in probabilities rather than certainties: people whose characteristics lead to a low score certainly do not always default on their obligations, and even people with high scores can sometimes do so. However, we include the score in our reports to help build a picture of the applicant's financial characteristics.
The underlying data used to calculate this score is highly sensitive and owned by Equifax, so we are not able to explain what factors contribute to an individual having a particular score. If the tenant would like further information on why they have the risk score that they do, they can contact Equifax directly themselves to check and if necessary challenge details of their credit history.