What is a credit check and why should Landlords perform a credit check?

A credit check involves requesting a copy of an applicant’s Credit Report from one of the major Credit Bureaus (i.e. Equifax). Credit Reports provide valuable insights into a person’s financial health and payment history to enable lenders and landlords to determine a person’s likelihood and ability to pay the interest or rent.

Credit checks are a valuable part of the screening process for Landlords because they show the history of how the individual has paid their obligations as well as insights like outstanding collections and credit inquiries. Having tenants that will pay rent on time is essential when operating a rental property, and credit checks along with rent reporting are essential steps in ensuring timely rental payments.

 


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