{"id":96071,"date":"2024-08-07T15:29:31","date_gmt":"2024-08-07T22:29:31","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96071"},"modified":"2024-08-07T15:29:39","modified_gmt":"2024-08-07T22:29:39","slug":"what-is-a-credit-reference-on-a-rental-application","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/what-is-a-credit-reference-on-a-rental-application\/","title":{"rendered":"What is a Credit Reference on a Rental Application?"},"content":{"rendered":"

When you submit your rental application, you want to make sure you stand out as a quality tenant. One of the ways you can showcase the positive aspects of your application is by adding a credit reference. Not only can a credit reference attest to your creditworthiness as a renter, but it can also give a potential landlord additional information about you.\u00a0<\/span><\/p>\n

In this Redfin article, we\u2019ll explain what a credit reference is and what to include in it when submitting your rental application. Whether you\u2019re <\/span>renting a home in Dallas<\/span><\/a> or an <\/span>apartment in Orlando<\/span><\/a>, find out how you can make your application the best it can be.<\/span><\/p>\n

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What is a credit reference?<\/span><\/h2>\n

A credit reference is a document that attests to the creditworthiness of an applicant. The letters can come from a variety of sources, but their goal is the same \u2014 to provide detailed information proving you make on-time payments when bills are due.<\/span><\/p>\n

When applying for a rental, the landlord or property management company may already have reference requirements in place. If they don\u2019t, you can consider offering these supplementary materials. Just make sure to choose credit references who will speak positively about your credit history.<\/span><\/p>\n

If you don\u2019t have a strong credit history or you have outstanding debt, credit references can double as character references or employment references. Both can help show you\u2019re a responsible tenant.<\/span><\/p>\n

When do you need credit references?<\/span><\/h2>\n

Since credit references can expand on your payment history, and demonstrate your likelihood of making timely payments, there are a few scenarios you may want to use them. This can include applying for a loan or opening a new credit card. Of course, they can also be a key piece in the rental application process.<\/span><\/p>\n

These references not only shed light on an applicant\u2019s credit history but also help landlords get an idea of your creditworthiness and whether you\u2019re likely to pay rent on time.<\/span><\/p>\n

Can they replace credit reports?<\/span><\/h3>\n

Credit scores are the most concise way for landlords to get an idea of your payment history and whether you\u2019re missing payments, like from previous leases or other debts. However, credit scores don\u2019t have additional details, just facts.<\/span><\/p>\n

Credit reports come from the three main credit bureaus, TransUnion, Equifax, and Experian. There\u2019s no character reference attached to your credit score, and credit reports often leave out information about extenuating circumstances that led to you making a late payment.<\/span><\/p>\n

As a result, credit references can help fill in the blanks. They provide the specifics that can help a landlord understand what happened. For example, if you have a ding on your credit report for not paying a month\u2019s rent on time, but your check got lost in the mail, a letter from your previous landlord could clear that all up.<\/span><\/p>\n

Most landlords will still want to see a credit report, so think of your credit references as a supplement rather than a replacement.<\/span><\/p>\n

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How to choose credit references<\/span><\/h2>\n

When choosing credit references, it\u2019s important to ask people who will speak positively about your credit history. Choices might include:<\/span><\/p>\n