Why do landlords typically examine credit history?

Landlords typically examine credit history primarily to confirm past rental history and payment reliability. A credit history provides insight into an individual's financial behavior, including their ability to pay debts on time. This information is crucial for landlords because it helps them assess whether a potential tenant is likely to fulfill their rental obligations, such as paying the rent consistently and on time. A good credit history often indicates responsibility and reliability, while a poor history may raise concerns about the tenant's ability to pay.

While other factors such as criminal backgrounds, employment duration, and personal references can also be important in evaluating potential tenants, these do not directly relate to the financial aspect of rental agreements as closely as credit history does. Understanding past rental payment behaviors is particularly significant since consistent on-time payments are often a strong indicator of future payment behavior.