Credit Reports for Landlords

A tenant credit report is a consumer report obtained through a credit bureau — Equifax, Experian, or TransUnion — that shows a prospective tenant's credit history. It includes their payment history on loans and credit cards, current balances and credit utilization, public records such as bankruptcies and judgments, and collections accounts.

For landlords, the most relevant sections are payment history and public records. A pattern of late payments or a recent bankruptcy is a strong signal that rent may not arrive on time.

Most credit reports include a credit score — a three-digit number that summarizes the applicant's creditworthiness. Scores range from 300 to 850. A score above 670 is generally considered good; below 580 is considered poor.

However, a single number does not tell the whole story. A score of 620 driven by a single medical collection is very different from a score of 620 driven by a pattern of missed payments across multiple accounts. Always review the underlying report, not just the score.

Set a minimum score threshold as part of your written screening policy, but also review the report details before making a final decision.

To obtain a credit report on a prospective tenant, you must have a permissible purpose under the FCRA — evaluating a rental application qualifies. You must also provide the applicant with a written disclosure that a consumer report may be obtained, and obtain their signed authorization.

If you deny an application or take other adverse action based on information in the credit report, you must provide the applicant with a pre-adverse action notice, a copy of the report, and a summary of their rights under the FCRA. After a reasonable waiting period, you must send a final adverse action notice.

Background Check Solutions provides all required forms and guidance at no extra charge.

Fair housing laws prohibit discrimination based on race, color, national origin, religion, sex, familial status, and disability. To protect yourself, apply the same credit criteria to every applicant for the same unit.

Document your screening criteria in writing before you begin accepting applications. Common criteria include a minimum credit score, no evictions in the past five years, and no outstanding balances owed to a previous landlord.

Consistent, documented criteria protect you from fair housing complaints and make your screening process faster and more objective.