Running a credit check is the part of tenant screening most first-time landlords get wrong — not because it's hard, but because there are two ways to do it and only one of them is actually legal for a private landlord. This guide walks through the whole process: what you need before you start, how to run the check, how to read the report, and what the law requires when you decline someone based on it.
What a tenant credit check actually shows
A rental credit report is not the same thing as the FICO score you see on a credit-card app. A screening-grade report pulls the applicant's full credit file from a bureau and surfaces the signals that predict whether they'll pay rent on time:
- A credit score — often a rental-specific score like TransUnion's ResidentScore, which is tuned to predict rent payment rather than loan default. FICO is available too.
- Payment history — late payments, charge-offs, and how recent they are.
- Debt load — total balances and monthly obligations, which tell you how much income is already spoken for.
- Collections and public records — especially anything rent- or housing-related.
For a section-by-section walkthrough of a real report, see our tenant credit check guide and a full sample screening report.
Before you run anything: the two things the law requires
A tenant credit check is a "consumer report" under the federal Fair Credit Reporting Act (FCRA). Before you can legally pull one, you need:
- Written consent from the applicant. This is why you always start with a signed rental application — it captures the authorization to run the report. Never pull credit on someone who hasn't applied.
- A permissible purpose. Screening a tenant for a unit you're actually renting is one. "Curiosity" is not.
Get these wrong and you're exposed to FCRA penalties, so this isn't a corner to cut. A modern application captures consent, ID, income, and rental history in one e-signed flow — see how the RentalApplication.ai application handles it.
Option A: Ask the applicant to bring their own report (why it usually fails)
You can ask an applicant to provide their own credit report. The problem: a self-provided PDF is trivially edited, and you have no way to know it's current or unaltered. It also puts you in an awkward spot on adverse action. Most experienced landlords skip this.
Option B: Use a tenant screening service (the right way for most landlords)
The standard approach is to use a tenant screening service that pulls the report directly from the bureau on your behalf. Here's the step-by-step:
- Have the applicant complete a written application. This captures the FCRA consent and the identifying information (legal name, date of birth, SSN, current address) the bureau needs to match the file.
- Start a screening order. Enter the property and the applicant, and choose your report — most services bundle credit with criminal and housing-records searches.
- Decide who pays. Some platforms make the landlord pay; some make the applicant pay; the flexible ones let either side cover it. On RentalApplication.ai you toggle this at checkout — cover it yourself or send a paid invite link to the applicant.
- The applicant verifies their identity. Good platforms confirm identity before releasing data, which protects both of you.
- Review the report. The credit file comes back alongside criminal and housing records so you can evaluate the whole picture at once.
Because a rental credit pull is typically a soft inquiry, it does not lower the applicant's credit score — a common worry worth telling applicants up front.
What score should you look for?
There's no legal minimum, and setting one too high can create Fair Housing problems. As a practical benchmark, many landlords treat a mid-600s rental score as a reasonable floor, then read the details rather than fixating on the number. A 640 with a spotless recent payment history is usually a safer bet than a 690 with two housing collections in the last year. Whatever criteria you set, write them down before you list the unit and apply them identically to every applicant — that consistency is your best defense against a discrimination claim. See what landlords can and can't legally screen for.
The step everyone forgets: adverse action
If you decline an applicant, raise their deposit, or require a co-signer because of something in the report, the FCRA requires you to send an adverse-action notice. It tells the applicant which credit bureau supplied the data and reminds them of their right to a free copy and to dispute errors. Skipping it is one of the most common — and most expensive — landlord mistakes. Platforms that generate this letter for you on a button click remove the risk entirely. Read our adverse-action notice explainer.
The bottom line
Running a tenant credit check is straightforward once you have the sequence right: signed application first, pull the report through a real screening service, read the details not just the score, and send the adverse-action notice if you say no. Do those four things and you've done it correctly. RentalApplication.ai bundles the credit pull with criminal and housing records and generates the adverse-action letter automatically — see flat per-report pricing with no subscription.
Frequently asked questions
How do I run a credit check on a tenant?
Get the applicant's written authorisation, then order the report through a screening provider rather than pulling it yourself — you need a permissible purpose under FCRA § 604(a)(3)(F) and a consumer reporting agency relationship. On RentalApplication.ai you send the applicant a link, they consent and verify their identity, and the report comes back to you, usually within minutes. You never handle their Social Security number.
Can a landlord run a credit check without the applicant's permission?
No. The Fair Credit Reporting Act requires a permissible purpose and, in practice, the applicant's written or electronic authorisation before a tenant screening report is pulled. Running one without it exposes you to statutory damages. The authorisation step is built into the application flow so the record exists if you are ever asked for it.
How much does it cost to run a tenant credit check?
Industry-wide the range is roughly $19–$89 per report. RentalApplication.ai starts at $24.99 with no subscription, and either the landlord or the applicant can pay — see the pricing page for what each tier includes.
Does running a credit check hurt the tenant's credit score?
Not with a soft pull, which is what tenant screening uses here — the applicant's score is unaffected and the inquiry is not visible to lenders. Some providers run hard pulls, which can shave a few points and stay on the file for two years, so it is worth asking before you choose one.
What credit score should a landlord require?
There is no universal number, and picking one off the internet is the wrong approach. What protects you is written, objective screening criteria that you apply identically to every applicant — a documented minimum, applied consistently, is defensible under fair-housing law in a way that case-by-case judgement is not. Read the score alongside the tradeline detail: a thin file and a file with recent rent-related collections can share a score and mean very different things.
How do I check a tenant's rental history and evictions?
Housing-court records surface filings the applicant was party to, and they are included on every RentalApplication.ai tier alongside credit and criminal records. Records are not a complete national picture — coverage varies by county — so prior-landlord references remain the strongest signal, which is why the platform places those calls for you. See housing records checks.