Entering into a rental agreement with someone carries with it a significant amount of financial risk. Because of this risk, landlords often require tenants to agree to a credit check before they will allow the tenant to move into a property. When a rental property runs a credit check on you, much of your personal information will become known.
Credit Level
When a landlord runs a credit check on you, your actual credit score will not be visible. With most of the services that provide credit information to landlords, only general credit information will be provided. For example, landlords can select a minimum credit level that they want to work with. If the tenant's credit is above that level, the reporting agency will tell the landlord. You do not have to worry about the rental property manager finding out your exact credit score with this process.
Payment History
When the credit check is run by the landlord, your payment history information will be included. Payment history is one of the most important variables for most landlords because it tells them how likely you are to pay your rent each month. If your credit report shows late payments or collection accounts, this will reflect negatively on you and make it less likely that you will be allowed to live in the rental property.
Rental History
In some cases, the credit check will also turn up information about your rental history. For instance, if you have an eviction in your past, it will most likely show up on your credit report. If you have an eviction on your record, it can be difficult to find another place to rent. If the eviction was several years ago and you have lived in rental units since that time successfully, it may not be as big of an issue.
Bankruptcy
If you have filed for bankruptcy in the past 10 years, it will show up on your credit report. The landlord can see the bankruptcy and it can hurt your chances of getting the rental unit. If you filed for bankruptcy several years ago, you may be able to build your credit score back up again by making regular payments and keeping your debt load low.
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