References
A reference is an adult who is familiar with a borrower and can be a friend, relative (not living at the same address), co-worker, or even an employer. References are usually required in loans to establish the stability of the borrower. Should the borrower default on the loan and attempt to evade collection or repossession, a reference could aid in locating the borrower.
In a standard loan, references are normally cross-checked with a local telephone directory and are rarely contacted. With a subprime (bad credit) loan, the number of required references is usually more – generally 4 to 6 – while, in many cases, the references are actually contacted by the lender to check on accuracy and validity.
Normally, borrowers need to have the name, address (home or work), phone number (home or work), and possibly the email address of the reference.