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If you’re wondering how to run a credit check on someone applying to rent from you, it comes down to five steps:
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Get the applicant’s written permission before you pull anything.
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Collect their full legal name, date of birth, Social Security number, and current address.
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Run the report through a tenant screening service that holds a permissible purpose under the Fair Credit Reporting Act (FCRA).
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Review the report against criteria you apply the same way to every applicant.
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Send an adverse-action notice if you deny the applicant, raise the deposit, or require a co-signer because of what the report showed.
Federal law, specifically the FCRA, governs every one of these steps. Getting one wrong can cost you more than the rental.
A credit report only shows how an applicant has handled debt so far. It won’t tell you whether they’ll pay rent on time going forward or take care of your unit, which is why it works best as one input inside a full screening process. If you’re building that process for the first time, our guide to managing a rental property covers where a credit check fits alongside the rest of your systems.
Step 1: Get Written Permission Before You Pull Anything
The FCRA requires a permissible purpose before you can pull anyone’s credit, and for a rental applicant that means their written authorization. Put the consent language directly in your rental application so every applicant signs it before you request a single report. A separate form is one more thing to remember to send, and to lose track of.
A basic clause covers you: state plainly that you will obtain a consumer report as part of screening the application, and have the applicant sign and date it. Keep the signed copy on file. The FTC’s guidance for landlords confirms you need a permissible purpose tied to the housing application before ordering a report, and most screening services won’t process a request without proof you have one.
Step 2: Collect the Information a Bureau Needs to Match the Right Person
A credit bureau matches a report to a person using four data points: full legal name, date of birth, Social Security number, and current address. Get these exactly as they appear on a government-issued ID. A dropped middle initial or a transposed digit in the Social Security number can pull the wrong file entirely, and you’d be screening a stranger’s history without knowing it.
Employment and income details belong to a different check entirely. A credit report tells you about debt and payment history, and it says nothing about what an applicant earns. If you also want to confirm someone can afford the rent, gather proof of income and calculate their rent-to-income ratio as a separate step alongside the credit pull.
Step 3: Run the Report Through an FCRA-Compliant Tenant Screening Service
Landlords almost never pull credit straight from Equifax, Experian, or TransUnion. You run it through a tenant screening service instead, one that already holds a permissible purpose with the bureaus and returns a report formatted for a rental decision, with the fields a landlord actually needs.
Three things are worth checking before you pick a service:
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FCRA compliance. The service should state plainly that it operates under the FCRA, and its report should identify itself clearly enough to appear in an adverse-action notice later.
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Accuracy and completeness. A report worth paying for bundles credit score, payment history, and public records in one place. A bare score with no context tells you little.
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Cost relative to what you get. The cheapest option often means a thinner report you’ll need to supplement with a second check.
Our guide to tenant screening covers the fuller picture: where a credit pull fits alongside background and rental history checks inside a complete applicant review.
Step 4: Read the Report Against Consistent, Written Criteria
Five things on the report tell you how an applicant handles their obligations: payment history, collections accounts, credit utilization, public records, and recent inquiries. A pattern of late payments or accounts sent to collections matters more than one isolated late payment years ago. High credit utilization, meaning an applicant is close to maxing out their available credit, can signal financial strain even when payments are current. Public records like bankruptcies or tax liens deserve context: a bankruptcy discharged five years ago with clean credit since then reads differently than one filed last month. A cluster of recent credit inquiries can mean an applicant is taking on new debt right before applying to rent from you.
Write your criteria down before you review a single report, then hold every applicant to the same standard. That’s what keeps the process both useful and defensible.
Fair Housing Applies to Every Screening Decision
The Fair Housing Act protects seven classes: race, color, national origin, religion, sex, familial status, and disability. You cannot apply a stricter credit standard to an applicant because of any of them, and you cannot use a credit report as cover for a decision made on a protected basis. The Department of Housing and Urban Development enforces these protections. The safest practice stays simple: set your credit criteria in writing before you screen anyone, and apply it exactly the same way every time.
Step 5: Send an Adverse-Action Notice if You Deny Based on the Report
If you reject an applicant, require a higher deposit, or require a co-signer because of something in their credit report, the FCRA requires you to send them an adverse-action notice. Most landlord guides skip this step entirely, and it’s the one that creates the most legal exposure when you do.
The notice must include:
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The name, address, and phone number of the screening company that supplied the report.
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A statement that the screening company did not make the decision and cannot explain the specific reasons behind it.
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The applicant’s right to a free copy of the report from that company, if requested within 60 days.
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The applicant’s right to dispute the accuracy or completeness of anything in the report.
You can deliver the notice in writing, electronically, or by phone, according to the FTC, though a written notice gives you a record if the decision is ever questioned. The CFPB confirms the same 60-day window and dispute right from the applicant’s side, worth a look if you want to see exactly what a denied applicant is entitled to ask you for.
How Much a Renter Credit Check Costs
A renter credit check through a screening service typically runs $25 to $50 per applicant, more if you bundle in a background check or eviction search, and higher still in markets where screening costs more to begin with.
Check your state before you set your fee. Several states cap what you can charge an applicant for screening, either at a fixed dollar amount or at your actual cost. California, for example, adjusts its screening fee cap every year for inflation under Civil Code Section 1950.6, and other states set their own limits or require you to refund any amount above what you actually spent.
What Credit Score Counts as Good for a Renter
A FICO score of 670 or higher falls in the “good” range, with 740 and up moving into “very good” and beyond. FICO’s own scoring guide sets these bands: below 580 is poor, 580 to 669 is fair, 670 to 739 is good, and 740 and above is very good or exceptional.
Treat that number as one input alongside payment history and income, not a pass-or-fail gate. Set your own written credit threshold before you start screening, and apply it the same way to every applicant. An applicant just under your cutoff with two clean years of payment history can be a better bet than one with a slightly higher score and a recent run of late payments.
FAQ
What does a renter credit check actually include?
A credit report shows an applicant’s payment history, current debts, credit utilization, public records like bankruptcies or liens, and recent credit inquiries. Income, employment history, and rental history come from separate checks.
Do I need written permission to run a credit check on an applicant?
Yes. The FCRA requires a permissible purpose before you can pull anyone’s credit report, and for landlords that means the applicant’s written authorization. Put the consent language in your rental application so every applicant signs before you request a report.
What is an adverse-action notice?
It’s the notice the FCRA requires you to send when you deny an applicant, raise their deposit, or require a co-signer because of something in their credit report. It must name the screening company, state that the company didn’t make the decision, and tell the applicant they can get a free copy of the report and dispute anything wrong within 60 days.
Can I charge the applicant for the cost of the credit check?
In most states, yes, but check your state’s rule first. Some states cap the fee at a set dollar amount, others limit it to your actual screening cost, and a few require a refund if you charge more than you spent.
How much does a credit check cost?
Usually $25 to $50 per applicant through a tenant screening service, more if you bundle in a background check or eviction search.
What credit score is considered good for a renter?
670 or higher on the FICO scale. Weigh it alongside payment history and income rather than deciding on the number alone.
This article is general information, not legal advice. Laws change, and every situation is different. For guidance on a specific situation, talk to a licensed attorney in your state.
