What is a Credit Reference on a Rental Application?

After months of searching, you’ve finally found an apartment with a great location, plenty of space, and within your budget. When you’re ready to fill out a rental application, you might be asked to provide a credit reference and other supporting documents. But what exactly does that mean? We’ll break down what a credit reference is, how it’s used, and what you can provide if one is requested.

What is a credit reference on a rental application?

If you’ve ever applied for a job, you likely provided a professional reference to confirm your experience and reliability to a potential employer. A credit reference is similar: Its information is meant to help potential landlords gauge the risk of renting to you. Your credit reference helps them decide if you'd responsibly manage rent payments consistently and on time.

While a friend or family member might know how you handle money, a credit reference would typically come from someone who you’ve had to make regular payments to in the past, such as a previous landlord, utility company or lender. Some landlords may also accept a copy of your credit report.

What to include in a credit reference

Landlords can have different preferences for the types of credit references they will accept and the information each credit reference should include.

In general, a credit reference from a previous landlord would include:

• Name of company or person completing the reference letter
• The credit reference’s contact information
• Your relationship to the credit reference
• The length of the relationship with the credit reference
• Proof of your payment history to the credit reference, such as a bank statement showing consistent, on-time rent payments

It’s usually a good idea to ask your potential landlord which details they need before asking for a credit reference.

Types of credit references used for rental applications

Understanding the types of credit references you need may make the rental application process smoother. Some examples of credit references include your credit report and a guarantor support letter.

Credit report

Some landlords pull your credit report as part of their tenant screening process. This will usually appear as a soft inquiry on your credit report, meaning it will not affect your credit score.¹

By looking at your credit report, landlords can see:

• Money you owe and the monthly payments you’re making
• Whether your credit card balances are close to your credit limits
• Any past-due payments or accounts in collection
• Bankruptcy, foreclosures or repossessions

Your credit report won’t explain or provide reasons for negative information — like making late payments because you were seriously injured and couldn’t work. Checking your credit report before completing a rental application allows you to prepare for any questions a landlord might have about potential "red flags."

Guarantor support letters

A guarantor is a person who promises to pay your rent, late fines and other fees if you cannot.

If you don’t have much credit or rental history — or if you’re working on repairing your credit — a letter of support from a guarantor could make your rental application more appealing to potential landlords.

How to get a credit reference for your rental application

The process to get a credit reference for your rental application may vary depending on the type of reference.

In general, you can expect to follow these steps:

1. Verify the landlord’s requirements

Find out which types of credit references the landlord accepts — and what information must be included in each document. This information may be on the landlord or property management company’s website, or you can simply call and ask before completing a rental application.

2. Contact potential references

As soon as you know what types of documents you’ll need to provide, request them as soon as possible.

When contacting businesses or individuals to ask for a credit reference, be sure to include:

• Your full name & contact information
• The landlord's contact information
• Any details that must be included in the credit reference

3. Submit all the paperwork to the landlord at once

Turning in your credit references and rental application all at once makes reviewing them easier for the landlord and may prevent important documents from getting lost or left out.

If you’ve received most of the credit references you requested but are still waiting on one, follow up with the landlord. Let them know where you are in the process and that you’re still interested in the rental.

It is a good idea to make a copy of each credit reference for your records or other rental applications you plan to submit, so you don’t have to go through the process again.

How to improve your chances of approval on a rental application

You might find it more challenging to get approved for a rental if there are a few financial skeletons in your closet or if you’re working on building your credit. But this doesn’t mean approval is impossible.

At the end of the day, landlords want to work with reliable tenants who pay rent on time. While a strong credit reference might help, you can take other steps to improve your chances of getting approved.

Having a stable income and paying your bills on time is a great start. You could also make a plan to pay down debt and reduce your overall credit utilization — the percentage of available credit you’re currently using.

If there’s an eviction or bankruptcy on your record, be prepared to explain why the financial hardship happened and how your financial situation has improved since.

Of course, approval is ultimately up to the landlord. However, if your application is denied based on information in a screening report, such as a credit report, the landlord is legally required to disclose the reason for the denial, whether in writing, orally, or electronically.²

Stand out with a winning application

Showing potential landlords that you’re committed to being a great tenant could be just what you need to get the keys to your new rental. Providing strong credit references is one way to do just that.

In the meantime, making simple steps to grow your money know-how could help you become an even more appealing tenant to a future landlord.

Sources

1. https://www.businessinsider.com/personal-finance/credit-score/credit-score-needed-to-rent-apartment (accessed January 30, 2025).
   
2. https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-my-rental-application-is-denied-because-of-a-tenant-screening-report-en-2105/ (accessed February 3, 2025).