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Tenant Credit Reports

If you are a prospective tenant looking to rent a property, be advised that tenant credit reports are now almost always required prior to signing a lease. The majority of companies that charge monthly fees for provided services not only require a credit report but base significant financial decisions on the information contained in these reports. For example, many cell phone companies obtain a credit report on new clients before they set the activation fee, and if a client has no credit or a poor credit history, that person is required to pay a significant deposit to ensure that the bill will be paid and the company will not lose money if he or she fails to complete the monthly payments in a timely manner. Tenant credit reports, just like any credit report, help protect landlords, enabling them to decide whether or not they are willing to take on the risk of having a tenant with no or poor credit.

Knowing Your Tenant Credit Report

Even though some people may consider tenant credit reports an invasion of their privacy, if you are looking to rent a property you will have to accept this investigation of your records. Furthermore, even though the landlords themselves decide whether or not to perform these credit checks, they often do not cover the cost, requiring the prospective tenant to pay the fee for the tenant credit report. It is therefore in your benefit to know your own credit report so that you can work to improve it if you currently have a low score or so you can save yourself time and expense by not trying to lease a property that you know you will be denied once the landlord sees your credit history.

Information included in your credit report includes your payment history, amount owed, length of credit history, new credit, and types of credit in use, among others. The credit score is determined by comparing the information and patterns in the current report to your past history. There are currently many websites and agencies offering free personal credit reports that enable people to know their own credit history before submitting it to the person running a formal check, such as a landlord.

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