If you've taken out a loan before, you might have been asked for a loan reference to vouch for your creditworthiness. A credit reference on a rental application is similar in that your landlord wants to make sure that you're not a risk and that you're likely to make your rent on time. For example, he might contact your bank to ask about your loan amount, payment history and length of the financial relationship. Understanding the types of credit references that landlords consider, how they impact the rental decision and how to resolve common issues can help you prepare a stronger rental application.
Credit references are people or businesses that have had a financial relationship with you and can provide details about past or current accounts. Landlords contact them as part of your credit check during the tenant screening process.
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When you fill out a rental application, you'll typically include information about your income, rental history and employment, as well as list references. In addition to naming personal references who can vouch that you would be a responsible and a good potential tenant, you may be asked to list the names and contact details for credit references. These references serve to prove that you have a history of paying your bills on time and won't be a financial risk to the landlord.
