Why are renters required to submit to a credit check? Does it deduct points off your credit score?

Question

Besides being an invasion of privacy, what if you would like to keep your assets or wealth private?
What if in the case of people with less than perfect credit are turned down? Do they have alternatives?

Answer 1

They are looking for if you have defaulted on rent or utilities. They actually don't care much about your other debt unless it's gigantic.

They base your security depsit on it. If you look like you might duck and run, the may charge you a month and a half up deposit up front.

They rarely actually turn people down. And if your credit is so bad that they do, there are places, usually small local places or people, who rent without a credit check.

Answer 2

The whole idea with a credit check is to be sure you are in good standing with your creditors. It is not an invasion of privacy. People need to know if you pay your bills and if you don't you are a credit risk. The only alternative to getting turned down is to work on getting your credit score where it should be so you won't be turned down. Otherwise, you will always be trying to find someone to take a risk by co-signing for you. Good luck on that.

Answer 3

Renters are required to submit to a credit check for a number of reasons:

1. To make sure you pay your bills. If you aren't paying other people, chances are you won't pay your landlord, either.

2. To make sure you don't have any judgements against you for not paying previous landlords or for bailing and leaving a bunch of damage on a former property.

Assets are not shown on a credit report. Wealth is not shown on a credit report.

Less than perfect credit and denied an apartment? The only alternative you have is to look for another place.

It can take several months to a year to evict someone. A landlord may not be able to afford to let someone live in their place rent-free. Your not paying rent may throw their property into foreclosure, so they aren't going to take that risk and want to know if you pay your bills.

If you don't pay for things that you actually own - like vehicles or furniture - then most likely you aren't going to pay for something that somebody else owns.

Answer 4

Inquiries do indeed 'deduct' from your score. However, 10 points would be a very high amount. Each time I've had an inquiry its only been a 2-3 point drop. As long as you dont go all crazy, that's reasonable. However if YOU are checking YOUR OWN credit report, this does not effect your score. An inquiry is only recorded as an inquiry if you go do something like apply for a credit card.

Answer 5

A landlord is taking a risk allow you access to his property. If you have a history of not paying your debts, what is there to guarantee him that you will be prompt in payments to HIM? He has mortgage payments, tax payments, etc. to make, and those aren't going away just because a tenant may have decided to spend too much on vacation and doesn't have enough left to pay his rent. Why should his credit rating head south because he's got a deadbeat tenant?

A credit report doesn't report anything on your assets. It only reports CREDIT -- debts that you owe. Otherwise, it would be an INCOME report.

Most people have "less than perfect credit". It's all in the degree of "less". Unless you are just a total deadbeat, then you should be ok. If necessary, your previous landlord can verify that you paid all your payments on time, etc., which will help if you have a spotty record otherwise.

Answer 6

You are required to submit to a credit check because they want to know what your payment history is like. If you're consistently late on bills, etc, they don't want you moving in, only to find that you aren't going to pay the rent every month like you agreed to.

I know having your credit checked can sometimes lower your score, but only slightly. I'm not sure the exact cases, it might be just when they actually request a copy of the report, and not just a score.

If you want someone to trust you to pay a loan, or to rent a house or to pay a credit card bill, you need to be willing to submit proof that you are capable of handing that task. A credit report is the easiest and most efficient way for a potential landlord or creditor to find out your history. They can't take your word for it.

This is just something you will have to get used to. It's almost like we live and die by our credit score. Unfortunate but true.

Answer 7

You need not submit to a credit check if you do not want to. Just don't expect to be able to rent the property involved. Landlords run credit checks as a means of helping to determine whether or not a prospective tenant will pay one time, incur property damages, or cause other issues which may violate the terms of the lease.

If you do not want to undergo a credit check, simply refuse to sign on the application. And then start looking for a different rental unit where they might NOT require a credit check.

Answer 8

as a land lord of about 100 units, I can tell you that I have been taken for well over $250,000 in the past 15 years or so. so yes I want to know that I will be paid. If someone came up to me and offered me a years rent in advance I am sure I would have no interest in your business beyond that. ( or some other assurance that I will be paid)

does it deduct points off your credit?.... it contributes if you have more than 3-6 inquieries in a 6 month time you get docked...

If you are concerned about privay, simply offer the man an alternitive way to assure him he will be treated fairly.

if your credit is less than perfect it is still not a problem.... if your credit suckes because you have taken from people and treated them unfairly, they do not want to be next... that is a fair request on their part.

Unfortuanatly there are housing laws that tend to give the tenant a lot of leverage once they move in so the landlords have to be careful on who they let in.

If it were up to me, my contract would read...... Rent is $500 to be paid on the 1st of every month. should rent not be recieved, by the 5th, all renters rights are here-by waved, and tenant herby gives permission for a moving company to enter my building and clear it of items within 24 hours and re-rent the property without further liability. If items are not claimed and the ballanc of utility bills rent ect paid, and the moving company paid within 48 hours, the moving company may dispose of property as fair compensation for their efforts without liability...holding the renter liable for any shortfalls in value or sale price

there... no credit check needed!.

Answer 9

The most common reason is to verify that the potential renter has a good history of making their payments.
These days, some landlords offer a discount on deposits for better credit.
Less than perfect is most likely nothing to worry about. Bad Credit or No Credit? Try to get a "manual override" from that Landlord. They may require more of a deposit. You can do the same thing on home loans.
Provide letters from previous landlords. Provide proof of timely payment on phone bills, utility bills, etc... Also provide proof of a good job or jobs.

Good luck!

Answer 10

I have rented from 5 places in my life.. and NEVER had my credit checked even once. So clearly not all landlords do it.

But the reason many do.. is to see if you have a history of paying your bills on time. Landlords dont want their tenents to be high credit risks because then they are going to have to fight for the rent every month.

Many landlords will allow tenents to rent even with poor credit. But they will make them put down higher security deposits, and sometimes a few months rent also.

And as far as deducting pts? Well its very minor, maybe 3pts. And those pts can be earned back quickly.