"Landlords do credit checks for the same reason that lenders do: to try to figure out how likely it is that the applicant will pay their bills on time every month," says Motola.
The landlords' money may depend on how quickly their tenants pay their rents. If too many tenants don't pay their rent, landlords might not be able to pay their own bills, like their mortgages.
"In a way, credit checks are a way to deal with risks. The best way to predict how someone will act in the future is to look at how they have acted in the past "Zrimsek says. "They are a tried-and-true way to find out if a potential renter has a history of using credit responsibly and if they can afford rent, which is probably their biggest expense."
Not all landlords check your credit, though. Motola says that it often depends on how the landlord rents and how hard it is to fill vacancies on the market.
The landlords' money may depend on how quickly their tenants pay their rents. If too many tenants don't pay their rent, landlords might not be able to pay their own bills, like their mortgages.
"In a way, credit checks are a way to deal with risks. The best way to predict how someone will act in the future is to look at how they have acted in the past "Zrimsek says. "They are a tried-and-true way to find out if a potential renter has a history of using credit responsibly and if they can afford rent, which is probably their biggest expense."
Not all landlords check your credit, though. Motola says that it often depends on how the landlord rents and how hard it is to fill vacancies on the market.