Credit History
Credit History
Landlords have traditionally used the credit report as a cornerstone of tenant screening. A credit report provides the landlord with an applicant’s credit history as reported to a credit reporting bureau as of a certain date. The credit history shows the applicant’s credit usage and credit management. In requesting an applicant’s credit report, the landlord wants to analysis the credit history to evaluate whether the applicant could be a financial risk if selected as a tenant. The landlord is looking to determine whether the applicant has the ability and willingness to fulfill terms and conditions of a lease agreement for full and timely rent payments.
Due diligence by the landlord is again required for compliance with ordinances in some localities. A landlord in some cities may be prohibited from rejecting an applicant on the basis of an insufficient credit score or insufficient credit history.