What is a Credit Reference? A credit reference is information used by lenders, landlords, utilities or employers to evaluate your payment history and creditworthiness.
AMANDA BARROSO AND LAUREN SCHWAHN
A credit reference is typically a document that can provide information about whether you pay your bills on time. It’s commonly used when you apply for credit, rent an apartment or set up utilities, and it gives companies confidence that they are making an informed decision about your application.
In practice, a credit reference usually means either:
• An account on your credit report, such as a loan, credit card or utility account, that shows how you’ve handled payments. • A landlord or service provider listed on an application who can confirm your payment history.
A credit reference is not a character reference or a credit score.
CREDIT REFERENCES FOR POTENTIAL TENANTS
If a potential landlord asks for credit references, they might be looking for information from companies or landlords that have rented to you before. Or, the potential landlord might want your permission to pull a tenant screening report, which has information on your behavior as a renter, such as on-time rental payments, evictions or collections. Landlords can use that information to make decisions about your application or require a deposit. Consumer reporting companies — including companies that do tenant screening and traditional credit checks — are required by the Fair Credit Reporting Act to give you a free copy of your report every 12 months if you request it. If you see errors in your tenant report, you can dispute them. In this context, a “credit reference” may also simply mean a credit report, which shows your bill payment history.
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