A tenant with a steady income who has never been evicted sounds like the perfect renter. But what if, after three months, they stop paying rent and you’re left chasing payments?
84% of landlords say non-payment is their biggest rental risk—this is where credit references come in. Credit references help you assess whether a tenant is financially responsible before signing a lease. But what exactly is a credit reference on a rental application, and how do you use it to screen tenants?
Read on to find out which credit references to request, how to verify them, and get a free credit reference sample with a ready-to-use template.
Key takeaways:
- Request one or multiple credit references from landlords, banks, employers, utilities, lenders, or personal contacts.
- Not all references are real. Cross-check landlords, income, and bank statements to avoid tenant fraud.
- A high credit score doesn’t guarantee on-time rent. Review rental history, debt-to-income ratio, and savings to assess an applicant’s financial reliability.
- Manual checks leave room for error. Baselane provides comprehensive tenant screening with verified credit, income, eviction, and criminal history.
Comprehensive reports you can trust, delivered in minutes.
What is a credit reference on a rental application?
A credit reference on a rental application helps landlords assess whether a tenant can pay rent on time. It’s a key part of the tenant screening checklist, offering a clear view of an applicant’s financial reliability.
Credit references typically come from previous landlords, banks, or other creditors. Rent application credit references include details like payment history, credit limits, and outstanding balances, helping you evaluate if a tenant manages their finances responsibly.
Types of credit references
Some credit references are more reliable than others. Knowing what to request and how to verify them can help you select the best renters and avoid bad rental tenants.
| Type of Reference | What it Shows | How to Verify |
|---|---|---|
| Landlord reference | Rent payment history and behavior | Contact previous landlord |
| Bank reference | Financial stability | Review bank statements |
| Employer reference | Employment status and income | Contact HR |
| Utility reference | Bill payment reliability | Review statements or call provider |
| Loan or credit reference | Debt load and repayment | Pull a credit report |
| Personal reference | Character insights | Call contacts (supplementary, not primary) |
| Alternative reference | Consistent payments | Ask for contracts or receipts |
Landlord references
Many landlords check rental history because past rental behavior predicts future reliability. According to industry reports, around 55% of landlords consider rental history essential during screening.
What’s ideal:
- Previous landlord confirms timely rent payments.
- Tenant respected property rules and left premises in good condition.
Red flags:
- Past evictions or repeated late payments.
- Negative feedback from earlier landlords, especially those before the current landlord.
Tenant screening questions:
- Did the tenant pay rent on time every month?
- Were there any lease violations?
- Would you rent to them again?
Financial institution references
Banks or credit unions can provide documentation like bank statements that reflect financial stability and responsible account management. While less common, some landlords still rely on financial institution references, especially for high-value rentals.
What’s ideal:
- Consistent positive account balances.
- No overdraft history or NSF transactions.
Red flags:
- Regularly low balances or frequent overdrafts.
- Irregular financial transactions or patterns.
Tenant screening questions:
- Does the tenant consistently maintain positive account balances?
- Are there signs of financial instability, such as overdraft fees?
Employer references
Employment verification ensures the tenant can afford rent consistently. Around 63% of landlords require tenants to provide pay stubs or proof of stable employment, highlighting this as critical tenant screening criteria.
What’s ideal:
- Employer verification letter confirming employment, income, and job stability.
Red flags:
- Unverifiable employment.
- Frequent job changes or gaps in employment history.
Tenant screening questions:
- What’s the tenant’s current employment status (full-time, part-time)?
- How long has the tenant been employed?
- Is the tenant’s salary sufficient to comfortably cover the rental cost?
Utility provider references
Utility providers can confirm a tenant’s financial reliability through consistent, timely bill payments. While not universally requested, utility statements often supplement traditional references and strengthen rental applications.
What’s ideal:
- Payment history reports showing consistently on-time payments.
Red flags:
- History of late payments or service interruptions.
Tenant screening questions:
- Has the tenant consistently paid utility bills on time?
- Were there frequent disruptions or late fees due to late payments?
Loan or credit references
Loan or credit references from lenders provide direct evidence of responsible financial management. Landlords often run a credit check on a tenant to get detailed insights into debt levels and repayment reliability.
What’s ideal:
- Statements showing regular, on-time payments.
- A healthy debt-to-income ratio (below 35%).
Red flags:
- History of late or missed payments.
- Accounts in collections or excessive debts.
Tenant screening questions:
- Does the tenant regularly pay debts on time?
- Are there any delinquent or defaulted accounts?
Personal references
Personal references from coworkers or friends offer character insights, but they’re typically considered supplementary rather than decisive in choosing a new tenant.
What’s ideal:
- Detailed character references confirming tenant’s responsibility and reliability.
Red flags:
- Generic or vague endorsements.
Tenant screening questions:
- How long have you known the tenant?
- Can you confirm their reliability and trustworthiness?
Alternative credit references
Alternative references are especially useful for first-time renters or those lacking traditional credit histories. These can include consistent payments on Buy Now, Pay Later (BNPL) statements or client contracts for self-employed applicants.
What’s ideal:
- Clear, documented records of consistent, timely payments.
Red flags:
- Missed payments or inconsistencies in payment history.
Tenant screening questions:
- Has the tenant consistently managed alternative credit payments responsibly?
- Are there signs of financial strain or over-reliance on credit?
How to get a credit reference from a tenant
Collecting and verifying credit references helps you choose reliable tenants and minimize rental risks. Here’s a step-by-step guide on how to do this the right way:
- Get written consent: Always obtain written authorization from the tenant before requesting credit information, as required by the Fair Credit Reporting Act (FCRA).
- Request multiple references: Ask for at least two credit references—these could include previous landlords, lenders, or utility companies.
- Verify each reference: Contact references directly to confirm the tenant’s financial reliability.
- Stay compliant: Use consistent screening criteria for all applicants to avoid discrimination and comply with the Fair Housing Act.
- Follow data privacy rules: Store sensitive tenant data securely and follow local regulations for document retention and privacy.
Example of a credit reference letter from a tenant
A credit reference letter is typically written by a previous landlord, financial institution, or employer and confirms the applicant’s ability to manage payments.
A well-structured credit reference sample should include key details such as the tenant’s payment history, account standing, and reliability.
Landlords can request a credit reference letter as part of the tenant screening process.
Tenant credit reference letter example
[Credit Reference Name or Company]
[Address]
[Date]
To: [Landlord’s Name]
[Property Address]
Subject: Credit Reference for [Tenant’s Name]
Dear [Landlord’s Name],
I am writing to provide a credit reference for [Tenant’s Name], who has requested to rent your property at [Rental Address]. I have had a financial relationship with [Tenant’s Name] since [Start Date] and can confirm their financial responsibility.
Account Details:
- Account Holder: [Tenant’s Name]
- Type of Account: [Checking, Savings, Loan, or Credit]
- Account Standing: [Good, Excellent, or Needs Improvement]
- Payment History: [On-time payments, late payments, or missed payments]
Additional Notes:
During our relationship, [Tenant’s Name] has demonstrated consistent financial stability and has never had an account in delinquency. Based on their history, I believe they would be a responsible tenant.
Please feel free to contact me at if you need further information.
Sincerely,
[Credit Reference Signature]
[Contact Information]
Credit reference template
Providing potential tenants with a credit reference form template can help ensure you get the right details from credit references for apartment applicants. It can be attached to the credit reference letter or used as a credit reference sheet checklist for tenants. Here’s what should be included:
- Sender’s information
- Type of credit reference (e.g., previous landlord, employer, financial institution representative)
- Company or property management firm (if applicable)
- Contact name and details (phone, email, address)
- Tenant’s details
- Full name of the tenant
- Rental property address
- Duration of the lease or financial relationship
- Payment history
- Confirmation of on-time rent payments or missed payments
- Outstanding balances (if applicable)
- Frequency of late payments (if any)
- Financial stability
- Income stability (if employer reference)
- Confirmation of steady income sources or assets
- Any known financial issues (e.g., past bankruptcies, NSF payments)
- Landlord feedback (if applicable)
- Any lease violations
- Tenant behavior and property maintenance
- Would they rent to the tenant again?
How to fill out a credit reference letter for a tenant
Follow these steps to complete a credit reference letter for a tenant moving into another property:
- Add landlord details: Add the new landlord’s name and address.
- Enter tenant information: Include full name and rental property details.
- Specify lease duration: Add lease start and end dates.
- Include your recommendation: Let the new landlord or lender (if they’re buying a home) know whether the tenant reliably paid rent and maintained the property.
- Provide contact details: Include your name (and company if applicable), phone number, and email address.
Sample landlord credit reference letter
[Landlord’s Name]
[Address]
[Date]
To Whom It May Concern,
I am writing this letter to provide a credit reference for [Tenant’s Full Name], who rented a property from me at [Rental Property Address] from [Start Date] to [End Date]. During their tenancy, [Tenant’s Name] consistently paid rent on time and maintained the property in excellent condition.
They were responsible and reliable, and I would confidently recommend them as a tenant. If you need further details, feel free to contact me.
Sincerely,
[Your Name]
[Signature]
[Contact Information]
How does a credit reference on a rental application work?
A credit reference works by verifying rental history, credit reports, and financial references provided by landlords, banks, employers, or lenders. Here’s how:
Collect tenant information
Start by asking tenants to provide multiple credit references, including:
- Previous landlords (rental payment history)
- Financial institutions (banking stability)
- Employers (income verification)
- Utility providers (bill payment reliability)
Make sure tenants give you written authorization before checking their references. This keeps your tenant screening compliant with the Fair Housing Act (FHA) and privacy laws.
Verify details
Always verify the references provided by tenants. Cross-checking prevents fraudulent information. For instance:
- Previous landlords: Check public property records or request lease documents.
- Employers and financial institutions: Contact them directly rather than relying solely on emailed or printed documents.
Review payment history
Check the tenant’s history of timely payments. Good references typically confirm:
- Regular, on-time rent payments.
- Consistent utility bill payments.
- Stable loan or credit repayment history.
Be wary of gaps or inconsistencies. Identifying frequent missed or late payments upfront can save you from chasing tenants for rent down the road.
Make an informed decision
Combine credit reference checks with credit reports, income verification, and rental history evaluations for a complete picture of potential tenants. The best tenant screening services deliver this information in one report. Here’s how it works with credit references:
- Rental history: A rental background check shows previous addresses, lease dates, and rent payments. Verify this information by asking the previous landlord credit reference check questions.
- Eviction report: Lists any prior eviction filings or judgments to help validate or cross-check negative feedback from past landlord references.
- Credit check: Provides the applicant’s credit score, outstanding debts, payment history, and account status (learn how to read a credit report). This verifies responsible credit use with financial institution references.
- Income verification: Confirms employment and income amounts, supporting employer references and financial stability claims made in the rental application.
Some reports provide more details than others. Services that only provide a credit score and uploaded pay stubs don’t give you a full view of a tenant’s financial situation.
Baselane’s tenant screening report goes beyond the basics, delivering a full Equifax credit report, eviction history from the largest U.S. housing record database, criminal history from 1.8 billion local and national records, and bank-verified income—all free for landlords.
How do credit references impact rental applications?
Credit references influence approval by confirming on-time payments and a reliable income source. Here’s how they impact rental applications:
- Demonstrates financial stability: Positive credit references indicate tenants can consistently meet rent obligations. A strong bank reference with a history of maintaining a stable account balance boosts credibility.
- Builds trust: References from previous landlords confirm on-time rent payments and good tenancy behavior, building confidence in the applicant. A letter stating “no late payments” strengthens the applicant’s case.
- Evaluates risk: Negative references, such as unpaid utility bills or outstanding loans, raise red flags about financial irresponsibility. A utility provider reporting late payments might lead a landlord to deny the application.
- Complements credit scores: Credit references provide context to credit scores by detailing payment history and financial habits. A tenant with a moderate credit score but excellent references can still secure a lease.
- Influences lease terms: Strong references may help tenants negotiate favorable terms, like lower security deposits or flexible payment schedules. A tenant with a reliable employer reference may be considered for a long-term lease.
Credit references give landlords deeper insights into a tenant’s financial behavior, significantly influencing rental application outcomes. If credit history is weak, co-signers or proof of assets may help.
Easily verify credit history with Baselane
A credit reference request form is only reliable if you can verify the information. Baselane’s online tenant screening makes this easy with an all-in-one report that gives you complete credit history, criminal and eviction records, and bank-verified income. Every applicant’s identity is verified, so you know you’re making informed decisions based on accurate data. Plus, you can sign leases, collect rent, set up security deposit accounts, and automate your bookkeeping all in one place.
Ready to find your next great tenant? Screen for free today.
FAQs
Request written references from a previous landlord, bank, or employer. Ensure they include the tenant’s payment history, account standing, and financial reliability. Ask for supporting documents like rental payment records, bank statements, or income verification. Contact references directly to verify details and confirm their legitimacy.
Include references who can confirm the tenant’s financial responsibility and payment consistency. A previous landlord should provide rental payment history and lease compliance. A bank can confirm account stability and savings. An employer should verify income and job security. Avoid friends, family, or unverifiable contacts, as landlords prioritize professional and financial references.
These are the five key details landlords look for in a credit check:
- Payment history: Late or missed payments signal financial risk.
- Credit score: A score of 620+ suggests responsible credit use.
- Debt-to-income ratio: High debt can indicate financial strain.
- Credit inquiries: Too many recent applications may be a red flag.
- Public records: Bankruptcies, evictions, or collections show past financial issues.
