Landlords cannot consider such information when making a decision to rent. When you give the landlord permission to do a credit check, they will obtain this financial information. An application fee is legally known as earnest money. It may also have other names, such as money down, holding money, and even security deposit. All landlords set their own policies on earnest money.
Any money given to the landlord before a lease is signed is earnest money.
When the landlord rejects the renter's application, all earnest money must be be returned to the renter immediately. For example, if the landlord sends the renter a rejection letter, the earnest money refund should be enclosed in the letter. When the landlord accepts the renter's application one of three things can happen to earnest money. Apply all earnest money to rent. So, if a landlord accepts a tenant a landlord may not keep any of the earnest money for any reason including credit checks or processing fees.