Tuesday, April 3, 2007

What Are Landlords Looking for in My Credit Report?

What Are Landlords Looking for in My Credit Report?

Before renting an apartment, house or other residence, a landlord will ask you for permission to access your credit report. This report contains a wealth of personal, legal and financial information about you compiled by the three credit bureau agencies Experian, TransUnion and Equifax. A prospective landlord then uses this information to decide whether you will be a reliable tenant.

Payment History

    Landlords want to know if you pay your bills on time. Late payments on revolving credit card accounts or real estate and auto loans will show up on your credit report. Closed credit card accounts may indicate problems with paying off high credit card debt.

Public Records

    State and county court records show up in your credit file. Landlords scan credit reports for bankruptcy filings, late or delinquent child support payments, tax liens and judgments--all of which may mark you as a risky tenant.

Criminal History

    If you were convicted of a felony or are a registered sex offender, it will be there on your credit report. Landlords can request a criminal background check as part of your credit report.

Past and Present Employment History

    Job stability may indicate not only your staying power as a tenant but your ability to pay the rent. The number of times you changed jobs in the past five years and how long you have been with your current employer are things your landlord wants to know.

Past and Current Residences

    Your credit report reveals not only your current address but where you have lived in previous years. It also tells your landlord if you have ever been evicted.

No Show Items

    Things that won't appear on your credit report include bankruptcies more than 10 years old, delinquent child support payments and criminal convictions more than seven years old. Misdemeanors do not make it in your credit file either. Because of health insurance privacy laws, medical information is off limits too.

Considerations

    You may want to look at your credit report first before allowing your landlord to view it. As part of the Federal Fair Credit Reporting Act, you are entitled to receive your own credit report from each one of the credit bureau agencies at no charge.

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