Why does my lender want to contact my landlord about me financing a vehicle?

I need financing for a used car so I'm going through the process. The lender wants to talk to my landlord before they give me approval. Why do they want to talk to my landlord?

Answer
“Talking to your landlord is a way for the lender to see what type of person you are with respect to on-time payments. This also enables the lender to verify your address and identity.
When they call your landlord, they’ll probably ask questions such as:
  • Is your tenant on time with rent?
  • Has your tenant ever missed a rent payment?
  • Does your tenant actually live here?
  • How long has your tenant been renting?
In addition to this, the lender may use your landlord as a character witness. This is somewhat typical with certain auto loans, so if you’ve been a good tenant, there’s no reason to worry.”
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Eric Schad
Answered on Apr 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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