What Is a Credit Reference? How It Works and Why It Matters

What Is a Credit Reference?

A credit reference is information used by lenders, landlords, utilities or employers to evaluate your payment history and creditworthiness.

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Edited by other Updated Jan 23, 2026 A credit reference is typically a document that can provide information about whether you pay your bills on time. It's commonly used when you apply for credit, rent an apartment or set up utilities, and it gives companies confidence that they are making an informed decision about your application. In practice, a credit reference usually means either: An account on your credit report, such as a loan, credit card or utility account, that shows how you’ve handled payments. An account on your credit report A landlord or service provider listed on an application who can confirm your payment history. A landlord or service provider listed on an application A credit reference is not a character reference or a credit score. is not

Credit references for potential tenants

If a potential landlord asks for credit references, they might be looking for information from companies or landlords that have rented to you before. Or, the potential landlord might want your permission to pull a tenant screening report, which has information on your behavior as a renter, such as on-time rental payments, evictions or collections. Landlords can use that information to make decisions about your application or require a deposit. Consumer reporting companies — including companies that do tenant screening and traditional credit checks — are required by the Fair Credit Reporting Act to give you a free copy of your report every 12 months if you request it. If you see errors in your tenant report, you can dispute them. In this context, a “credit reference” may also simply mean a credit report, which shows your bill payment history.

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Credit references for utilities

Utility companies may use credit references, including traditional credit scores, to decide whether you need to pay a security deposit — and if so, the amount. Some industries rely on specialized scoring models, such as Experian TEC Connect, to assess creditworthiness rather than a traditional credit score. A utility company may accept a “letter of credit” to waive a security deposit if the customer has had utilities before. A letter of credit can be requested by a former customer of a utility. It’s typically printed on letterhead stationery and includes account number, payment history, dates and balances. If your payment record is strong, submitting a letter of credit could help waive or reduce a required deposit.

Credit references for borrowers

When you apply for a credit card or loan, the credit references usually come from one of the three major credit bureaus: Equifax, Experian and TransUnion. Lenders might look at your credit report, which shows your account history and payment behavior, or your credit score, which is a number calculated from the data in your credit reports. While your credit score and credit report are related, they are two separate pieces of financial information. Creditors may use one or both to evaluate your application, along with other factors such as your income, debt-to-income ratio and assets.

Credit references for employment

In some states, employers are allowed to check a modified version of the job applicant's credit report as part of the hiring process, and those might reasonably be called a credit reference. Employers must have your written permission to access your credit reports, and the version they receive doesn't not include without account numbers, birth year or marital status.

How to check your credit references

Before you give permission for a credit check, it's smart to review what a lender, landlord or potential employer will likely see. Be prepared to explain any negative marks, like missed payments, collections or bankruptcies. You can get free weekly credit reports from each of the three major credit bureaus at AnnualCreditReport.com. Many credit card issuers and banks offer free credit scores, and you can access them from many personal finance websites, including this one. » Get started: Access your free credit score from NerdWallet » Get started: Explore more on About the authors Barroso Amanda Barroso, Ph.D., is a writer and content strategist helping consumers navigate budgeting, credit building and credit scoring. Before joining NerdWallet, Amanda wrote about demographic trends at the Pew Research Center and earned a Ph.D. from The Ohio State University. Her work has been featured by the Associated Press, Washington Post and Yahoo Finance. Published in Schwahn Lauren Schwahn is a writer at NerdWallet who covers credit scoring, debt, budgeting and money-saving strategies. She contributed to the "Millennial Money" column for The Associated Press and managed a team of writers producing content for the series. Her work has also been featured by USA Today, MSN, The Washington Post and more. Lauren has a bachelor’s degree in history from the University of California, Santa Cruz. She is based in San Francisco. Published in O'Shea Bev O'Shea is a former NerdWallet authority on consumer credit, scams and identity theft. She holds a bachelor's degree in journalism from Auburn University and a master's in education from Georgia State University. Before coming to NerdWallet, she worked for daily newspapers, MSN Money and Credit.com. Her work has appeared in The New York Times, The Washington Post, the Los Angeles Times, MarketWatch, USA Today, MSN Money and elsewhere. Twitter: @BeverlyOShea. Credit references for potential tenants Credit references for utilities Credit references for borrowers Credit references for employment How to check your credit references How Long Do Derogatory Marks Stay on Your Credit? How to Get Your Free Credit Reports From the Major Credit Bureaus Credit Reports: What They Are and How To Read Them Credit Score vs. Credit Report: What’s the Difference? Credit Reports: What They Are and How To Read Them By Amanda Barroso, Bev O'Shea Credit Score vs. Credit Report: What’s the Difference? By Amanda Barroso, Bev O'Shea What is a Hard Inquiry and How Long Does It Affect Your Credit? By Bev O'Shea, Amanda Barroso How to Get Your Free Credit Reports From the Major Credit Bureaus By Bev O'Shea, Amanda Barroso Who Can Access Your Credit Report or Score? By Amanda Barroso