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Myths And Truths About Landlord Credit Inquiries __________________________________________ By Anna Elin - http://creditreportsforlandlords.org

A landlord credit check is a tool used by landlords in order to gauge the amount of as well as the type of risk a potential tenant is. The basis is that past credit related transactions of a natural or juridical person could determine to some extent the likelihood of a tenant defaulting or paying the rent on time and in full. This article will tackle the truths and the myths about credit inquiries made by landlords from the perspective of the same as well as the applicant tenant. Credit Check for Landlords: The Sole Basis for the Decision Click Here A popular myth perpetuated by so called "experts" is that a landlord can run a credit check and use it as the sole basis for his or her decision. Therefore, an applicant tenant who has a very bad credit report is sure to get a denial. This is absolutely false.

The truth of the matter is that a landlord can run a credit check and will use the credit report as a basis for his or her decision. However it is still the discretion of the landlord to deny or approve the application. A tenant who has a low credit score or a bad credit report can increase the chances of approval by admitting this outright and if he or she has sufficient capital, just tell the landlord that he or she is willing to pay an increased rent to offset the risk or is willing to pay additional deposit as well as advanced deposits. Assuring the landlord that you are more than willing to give postdated checks outright at the contract signing is also a good idea. Credit Check for Landlords: Hard and Soft Another popular myth is that a tenant applicant should not give authorization for the landlord to run a credit check because the more credit inquiries are made over a short span of time the lower the credit score will get. Taking into consideration the fact that a tenant will shop around with several landlords


means that the tenant applicant is left with dozens of landlord credit checks which will definitely lower the credit rating. This is absolutely false. The truth of the matter is that landlord credit checks seldom affect a person's credit score. The reality is that a credit report with a lot of credit inquiries put a third party on the alert and can even cause a slight drop in the credit score. However this is only true in case of hard inquiries.

A credit inquiry by a landlord is considered a soft inquiry regardless of the number of inquiries provided it was made over the span of a few weeks. All inquiries will be considered as a single soft inquiry and by law cannot affect the credit score. The reason is because the law recognizes the right of a tenant applicant to shop around for the best deal possible and this means going to dozens or even hundreds of tenants to request a quote. Credit Check for Landlords: Bring Your Reports A tenant can make things easier by bringing his or her free annual credit reports when talking with a landlord. Just make sure that the same is not older than six months. And it would be wise to bring the top three credit reports from Experian, TransUnion and Equifax, which hold greater weight with landlords.

So‌ What’s Next ? To Learn More About Credit Reports For Landlords, Click Here: http://creditreportsforlandlords.org


Credit reports for landlords