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The Importance of Credit History for Tenant Screening

Updated: Jul 3, 2020

One of the most important aspects to consider when choosing a new tenant is credit checks. In fact, every landlord will be more than happy to know if the prospective tenant is likely to pay their rent on time besides what they claim during negotiations.

It is true that checking for credit history and tenant screening incur some costs. However, just because of the cost factor ($15-20), a landlord should not avoid doing it.

To cover that, you can charge an application fee on all the prospective tenants.

The information included in a tenant screening

As a result of performing a credit history and tenant screening, you will be able to read some specific information about the prospective tenants. That information will inspire you about the prospective tenant so you can decide whether or not to accept him or her.

Identification information

This refers to the information such as name, address and social security number of the tenant.

Credit history

This segment will include information about the bank account for a period of 7 to 10 years. In addition to that, it exposes credit card information and loan information of the respective tenant with a FICO score. You will be able to see how long their accounts have been open, the history of the payments, their loan limits, etc. as well.