What Is a Credit Reference?

A credit reference is a document, person, or company that provides information on an individual's credit history. Lenders, landlords, and others can request them.

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This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

At-A-Glance

A credit reference may be required if you apply for a loan or credit card, or if you’re applying for a new lease, utilities, or job.

Lenders and credit card companies don’t extend credit to just anyone. There’s a process to getting approved. A credit reference is a part of that process that gives them a quick look at your creditworthiness. That can also be useful to a landlord, utility company, or potential employer. In this article, we’ll look at what a credit reference is and how they are used.

What Are Credit References?

A credit reference can help a lender, potential landlord, utility company, or employer gauge your creditworthiness, or ability to repay money that you borrow. An example of a credit reference is a credit report issued by a credit reporting bureau. Other types of credit reference are asset documents and character references. Lenders will typically require a credit reference when assessing the risk of issuing an applicant a loan or credit card. Landlords may also use them when assessing prospective tenants. Utility companies and employers may also require them.

Types of Credit References

• Credit reports
  A credit report may be required when applying for credit, such as a loan or credit card. Credit reports are issued by the three main credit reporting bureaus: Experian ® , Equifax ® , and TransUnion ® . These reports contain the information used to calculate your credit score. Lenders and credit card issuers may also request your credit score during their decision-making process. 1

When Do You Need a Credit Reference?

You might be asked to provide a credit reference in several different scenarios. Here are some situations where you may encounter this:

• When applying for a credit card
  Credit card issuers can do a soft inquiry on your credit by simply checking your credit score. When they do the hard inquiry before final approval, they’ll typically need a credit reference. Usually, this will be your credit report.

How to Get a Credit Reference

How to go about obtaining a credit reference will depend upon which type of credit reference is being requested.

For credit cards and loans, a lender will typically pull your credit report themselves.

When obtaining an asset statement, you’ll need to request the documents yourself through your bank or broker.

When it comes to character references, you may be able to obtain a letter from the party in question. Alternatively, your prospective landlord or employer may instead request your reference’s contact information so they can speak to them themselves.

A credit reference can help or hinder your chances of obtaining credit, a mortgage, apartment, or job. Consider checking your credit report first to see what information is on there. Checking your credit report may also help you to identify mistakes or inaccuracies, which you could correct; something that could help your credit report.