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What is a Credit Reference?

6 min read

Last Updated: February 26, 2025

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Key Takeaways

Many businesses and individuals, including loan providers, employers, and landlords, may request credit references to determine your fiscal responsibility, background, and habits.
Credit references could include your credit report, asset documentation, and letters or phone calls from credit character references.
Monitoring your credit report and keeping track of your assets could help you prepare for credit reference checks.

Your credit background matters for more than just credit cards. Whether you’re looking for an apartment, setting up your home’s utilities, or applying for your dream job, you might undergo a credit check. Credit references could provide a company or a person with information about your finances, debt, and money management. Read on to learn how credit references work and when you might encounter them.

Definition of a credit reference

A credit reference is a tool that helps a business (or an individual) determine your creditworthiness. It provides insight into your credit history and your financial habits. Your credit references could influence your job, credit card, apartment, and more.

Who may ask for a credit reference?

Your credit references could have an impact across multiple areas of your life. The following businesses or people may ask for a credit reference:

Credit card companies: Issuers usually check applicants’ credit reports and scores. Bad credit may limit your options and subject you to higher interest rates. However, even people with low credit scores may qualify for secured credit cards, which require a deposit. Responsible card use could help you improve your credit over time.
Other lenders: In general, lenders require credit references when you apply for a mortgage, a student loan, or a personal loan. They may consider debts, income, assets, and payment history. Poor credit references could lead to higher closing costs on a mortgage, a higher interest rate, or an outright denial of your application.
Landlords or property management companies: When you apply for an apartment or rental home, a landlord usually checks your credit along with your income and employment. A bad credit reference may raise a red flag about your ability to pay rent on time each month. Some landlords have specific credit score requirements. However, other types of credit references may make up for a low credit score.
Employers: Credit references can show employers your organizational and financial skills, as well as your reliability. If you work within the finance sector or are seeking a job managing money, you may run into a credit check requirement. Employers can access your credit report in some states only when you’ve provided written permission. However, they can’t legally view your credit score or birth year.
Utility providers: When you sign up for a utility service like gas, electric, or water, the provider often checks your credit background. They may be interested in your payment history. Many states prevent companies from denying you service based on your credit history. However, if you’ve missed payments, they may charge you a more substantial deposit.
Cell phone companies: Cell phone providers often check your credit references to determine your eligibility for a new plan or phone line. Like utility companies, they usually focus on payment history. The cell phone company may deny you service if you've missed payments. Good credit, on the other hand, could grant you access to the best financing options.
Banks: Financial institutions may check your credit before allowing you to open an account—even if you aren’t applying for a credit card. They might look for on-time payments, debt management, and financial stability. A good credit reference may tell them that you’re unlikely to overdraw your bank account.

Most common types of credit references

There are several different types of credit references that a business or individual may want to review. They may use one, two, or all three reference types.

Credit reports

A credit report may be the first type of credit reference that comes to mind. As you use your credit card and manage loans, lenders typically share your activity with the three major credit reporting agencies or credit bureaus. The credit reporting agencies compile that information into your credit reports.

Your credit reports include information like your payment history, total credit utilization ratio, how long you’ve had credit, the types of loans or lines of credit, and your total credit limit.

Asset documents

Your assets include bank accounts or investments whose funds are available without penalty. Standard asset documents include checking and savings account statements, certain stock and bond information, and deeds from real estate investments.

Potential lenders, landlords, and others may request asset documentation to understand your overall financial stability better. Assets provide extra security in case your income lapses or you have emergency expenses. If you have many assets, lenders may see you as less of a credit risk.

Character credit references

Much like a professional reference provides information about your employment qualifications, a character credit reference describes your financial habits. They may take the form of a letter, email, or phone call.

According to Experian, former landlords, bosses, or lenders may be able to provide informed character credit references. Typically, lenders want references from people who are knowledgeable about your money management, payment history, and overall character. Landlords may also request a tenant report detailing your rent payments and adherence to your rental agreement.

Depending on the lender, character credit references may supplement other types of reference, especially if you’re in the process of improving your credit.

How do you get a credit reference?

When you apply for a loan, credit card, or apartment, the lender or landlord uses your personal information such as your name, Social Security number, date of birth, and address to request a credit report from credit reference agencies or credit bureaus. You can address any issues with your credit and identify errors by contacting the credit reporting agencies. You can view your credit report online at AnnualCreditReport.com for free each week.

Did you know?

If you’ve reviewed your credit reports and are looking for a new credit line, you may qualify for a new Discover Credit Card. Every Discover Card earns rewards on purchases, and you can find a card that earns rewards most valuable to you. Check if you’re pre-approved with no harm to your credit score.¹

See If You're Pre-Approved

Businesses and individuals checking your credit references may request asset documentation and character references from you directly. The process for compiling asset documentation depends on your circumstances. You may need to request statements and tax forms from your bank, brokers, and employers. For physical assets—like art, property, or jewelry—you might need certificates of ownership. Please note that Discover doesn’t accept property as assets.

Some applications require phone numbers or email addresses for character credit references. In that case, you might want to contact your potential references before providing their information, so they know which entities may be contacting them. If you have a low credit score or limited assets and want to provide character references as extra support, you could reach out directly and request letters or emails.

The bottom line

Credit references could influence many aspects of your life, including credit cards, loans, employment, home, and utilities. Checking your credit report and keeping track of your assets could help you prepare for significant life changes. If your credit isn’t where you’d like it to be, a character credit reference could help boost your chances of approval.

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