What Do You Put for Credit Reference on Rental Application?

Understanding Credit References

Rental applications frequently require credit references as a means for landlords to evaluate a prospective tenant’s financial responsibility and reliability. These references provide insights beyond a simple credit score, offering a more comprehensive view of an applicant’s financial behavior. Landlords use this information to determine the likelihood of timely rent payments and proper care of the property. A credit reference within a rental application context serves to verify an applicant’s financial behavior and trustworthiness, extending beyond traditional credit bureau reports. Landlords seek these references to gain a deeper understanding of an applicant’s history of honoring obligations, making timely payments, and general dependability.

Types of Acceptable Credit References

Various individuals or institutions can serve as effective credit references on a rental application:
Financial Institutions: Banks, credit unions, or lenders can attest to financial stability. Landlords can verify account standing or loan repayment history through contact information for the institution or a loan officer.
Previous Landlords: These are highly valued references, as they can directly attest to an applicant’s rental payment history and property maintenance. Their feedback is particularly insightful regarding on-time rent payments and overall tenancy behavior.
Employers: Employers can serve as references, verifying income, employment history, and reliability. They can speak to an applicant’s work ethic and financial stability, reassuring landlords about consistent income.
Utility Companies: Electricity, gas, water, or internet providers can demonstrate a history of consistent, on-time bill payments. These “trade references” indicate an applicant’s ability to meet financial obligations to non-lending entities.
Personal References: Close acquaintances or mentors can vouch for character. However, professional and financial references are generally prioritized due to their objective insight into financial behavior. For individuals with limited traditional credit history, such as recent graduates, alternative references like educational institutions or a financial aid office may be considered.

Gathering and Presenting Reference Information

It is essential to gather specific details for each reference, including their full name, professional title, the name of their company or institution, their phone number, and email address. You should also note the nature and duration of your relationship with each reference.

Before listing any individual or institution as a reference, it is crucial to obtain their explicit permission. This courtesy ensures they are prepared for contact from a landlord and can provide a positive, accurate account. When completing the rental application, accurately transfer all gathered information. If the form requests account numbers, provide only the last few digits for security, or clarify that the institution can verify the account without the full number.

What Landlords Look For

Landlords carefully examine credit references to gain a comprehensive understanding of a prospective tenant’s financial habits and reliability. A primary focus is on payment history, assessing whether the applicant consistently paid rent, loans, or utilities on time. This record helps landlords predict the likelihood of future on-time rent payments.

Beyond payment patterns, landlords evaluate an applicant’s overall financial responsibility, seeking evidence of fulfilling financial and contractual obligations. They also assess reliability, observing consistency and dependability in past rental, employment, and financial relationships. For personal references, the landlord aims to gauge the applicant’s character, including trustworthiness and general behavior, to ensure a good fit for the property and community.