Credit Check

Glossary

A credit check reviews an applicant’s credit history during rental screening to help assess payment risk and leasing eligibility.

Definition

A credit check is part of rental applicant screening where a property team reviews credit information to understand how an applicant has managed debt and payments. It may include a credit score, payment history, open credit accounts, outstanding balances, bankruptcies, or collections. In multifamily leasing, credit checks are typically used alongside income verification, rental history, identity checks, and other screening criteria.

Example

A leasing team receives an application for a vacant apartment and runs a credit check as part of its standard screening workflow. The report shows the applicant’s payment history, current debt, and any collections, helping the team apply its written approval criteria consistently.

Why It Matters?

Credit checks help operations leaders manage leasing risk by giving teams a structured way to evaluate financial reliability before move-in. When used consistently within documented screening criteria, they can support on-time rent collection, reduce bad debt exposure, and improve decision consistency across properties.

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