Landlords who use just a credit report to background check their clients really bug me. Rental payments are very rarely reflected in a credit score. Experian has a specific credit score for rentals now but it only applies if the prior landlords have been reporting payment history to Experian. This does not happen in the real world.
I know that reliance on the credit report has become a quick and legal way to assess the chances of a tenant paying rent on time. However, when the [bleep] hits the fan many tenants will stop paying their bills, but keep paying the one thing that doesn’t show up on the credit report: their rent.
This is one of the reasons why renting is inescapable for many of the lower income residents of Chicago. They let their bills slide in favor of rent. So their credit score lowers. So it gets harder for them to get credit or better housing or a loan to purchase a home.
The surest way to verify rent payment has been practiced by landlords for centuries: pay a visit to the prior landlord and ask them. However, as with all things, the advent of the information age combined with fair housing legislation has introduced some complications to this ordinary business of checking references. Find out how to do this the proper way after the jump.