Rental Credit Check: How to Check Someone’s Credit for Renting

Checking someone’s credit is a core part of the tenant screening process that helps you gain an objective, transparent view of an applicant’s financial habits — from their payment deadlines and outstanding debt to their overall debt-to-income ratio. However, if this is your first time finding a new tenant, it may not be clear how to properly check someone’s credit for renting.

In this article, we break down step-by-step how to request credit checks, highlight critical details inside TransUnion-powered screening reports, and answer common questions about the entire process.

Why Should You Run Credit Checks on Tenants?

You should run a rental credit check to evaluate an applicant’s financial reliability, verify payment history, and ensure the tenant can comfortably afford monthly rent alongside existing debt. 

Additionally, running a credit check on tenants can:

• Verify true affordability: Reviews recurring monthly debts, active loans, and credit card balances against reported income to confirm if the tenant can afford the listed rent.
• Predict payment timeliness: Uncovers past delinquencies, late payment patterns, or accounts sent to collections before signing a lease.
• Protects cash flow: Prevents missed rent payments and severe lease violations, saving you thousands of dollars in potential eviction fees and vacancy losses.
• Deliver objective data: Replaces guesswork with comprehensive, TransUnion-powered screening reports to make fair, confident applicant selections.

What You Need to Run a Credit Check on Tenants

Before requesting a rental credit check, you must collect three core components to process a tenant credit check. See below for an overview of each:

• A completed rental application: Collect your applicant’s full legal name, current address, date of birth, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). 
• Written applicant authorization: Federal law under the Fair Credit Reporting Act (FCRA) requires you to obtain explicit written permission from your applicant before pulling their credit history. 
• Proof of Landlord Identity and Ownership: Credit bureaus mandate that you verify your identity and legitimate business purpose before accessing consumer credit data. Keep property deeds, mortgage statements, or government-issued ID accessible if you need to verify your identity.

Using a tenant screening service can often help you source all this information in one secure platform, alleviating the stress of having to manage paper rental applications on your own.

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Where to Get a Tenant’s Credit Report

The most common ways of getting a tenant’s credit report are directly through one of the three major credit reporting bureaus (Equifax, Experian, and TransUnion) or through a tenant screening service like Avail. 

We partner with TransUnion to provide landlords with trusted credit reports, background checks, and eviction reports. You add one report or all three for a bundled one-time fee that the renter (or you as the landlord) can cover. 

Information you can expect on our credit reports are:

• TransUnion-provided numerical credit score
• Seven-year detailed payment history
• Collection records
• Total balance summary
• Documented previous addresses
• Documented previous employers
• Account age details, including oldest, newest, and average account age
• Credit inquiry count and details
• Count of derogatory marks
• Fraud indicators

The benefit of requesting a credit report through Avail is being able to bundle it with a rental application to keep everything in one place.

How to Check a Tenant’s Credit in 6 Steps

Step	Action	Key Benefit & Compliance Focus
1. Input your rental property details	Link property unit details to your screening software.	Keeps all applicant records, communications, and credit reports organized in one secure dashboard.
2. Review state and local tenant screening laws	Research local fee caps, disclosure rules, and credit criteria limits.	Protects your business from FCRA and municipal housing ordinance violations.
3. Configure your rental application requirements	Select standalone credit reports or full background screening bundles.	Gathers necessary background details while keeping evaluation standards uniform for every applicant.
4. Send the application invitation to prospective renters	Share an online application link via email or direct portal invitation.	Speeds up turnaround times by letting prospective renters apply instantly from any device.
5. Secure written authorization and screening payment	Obtain FCRA-compliant written consent from the applicant prior to pulling data.	Automates consent collection and handles payment processing directly through TransUnion.
6. Review the credit report for financial signals	Evaluate credit scores, payment history, DTI ratios, and public records.	Provides clear, objective financial data so you can choose qualified renters with confidence.

Follow these six steps to evaluate an applicant’s credit history efficiently and legally:

1. Input Your Rental Property Details

Add your property information into your management dashboard or screening software before inviting applicants. This keeps screening information like applicant records, communications, and credit reports tied to a specific unit in one secure location.

2. Review State and Local Tenant Screening Laws

Certain jurisdictions place strict limits on application fee amounts, restrict how you can evaluate credit scores, or mandate specific disclosure notices prior to pulling consumer reports. 

That’s why it’s important to stay informed on local regulations before requesting specific screening reports to avoid compliance violations under the Fair Credit Reporting Act (FCRA) and housing ordinances.

3. Configure Your Rental Application Requirements

Select your digital rental application settings and choose the specific screening reports you want from the prospective tenant. 

With Avail, you can request a standalone rental credit check or bundle it with nationwide criminal background and eviction history reports for a comprehensive view. 

4. Send the Application Invitation to Prospective Renters

Invite your prospective tenant to apply by entering their email address or sharing a direct link. 

Online application tools allow prospective renters to complete their information from any device, which speeds up your overall turnaround time.

5. Secure Written Authorization and Screening Payment

Federal law under the FCRA requires you to obtain explicit written permission from the applicant before you pull their credit history. 

When you screen through Avail, the applicant receives an automated prompt to securely authorize the TransUnion credit check and cover the screening fee directly — saving you from handling sensitive financial payment details.

6. Review the Credit Report for Financial Signals

Open the completed rental credit check directly inside your online account as soon as your applicant authorizes the request. 

Carefully evaluate key financial indicators, including their credit score, payment history, debt-to-income ratio, active loans, and any accounts sent to collections.

What to Look for in a Tenant’s Credit Report

Requesting screening reports is an essential step in tenant screening, but knowing how to interpret the details sets successful DIY landlords apart. Experienced DIY landlord David Salin, founder of Take the Leap, recommends evaluating a prospective renter across two distinct phases: the rental application and the credit report. 

First, cross-reference the core details provided on your applicant’s rental application before pulling financial credit data:

• Verify personal information: Confirm the applicant’s full legal name, current address, contact details, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to prevent identity fraud.
• Assess employment and monthly income: Confirm stable employment by checking employer details, job title, duration of employment, and total earnings. Standard industry guidelines require an applicant’s gross monthly income to equal at least three times the monthly rent.
• Contact prior landlord references: Reach out to previous housing providers to inquire about payment punctuality, property maintenance habits, lease compliance, and overall tenancy behavior.
• Evaluate personal and professional references: Speak with supplied references to gain extra context regarding the applicant’s character and reliability.

Once that’s complete, open the screening report to review the following:

• Understand their credit score: Review the applicant’s overall credit score to gauge general financial responsibility. While specific thresholds vary by market, many independent landlords require a minimum credit score of 650.
• Check on-time payment history: Examine historical payment records across active credit cards, auto loans, and personal accounts. Frequent late payments or severe delinquencies can signal high payment risk for your rental income.
• Calculate the debt-to-income (DTI) ratio: Compare the applicant’s total recurring monthly debt payments against their gross monthly income. A lower DTI ratio proves the applicant can manage rent payments alongside existing monthly debts.
• Identify active collections and unpaid debts: Pay close attention to outstanding balances or accounts turned over to collection agencies, especially those tied to past housing providers or utility companies.
• Review public legal records: Inspect public records for open bankruptcies, money judgments, or legal liens that impact an applicant’s overall financial reliability.

What to Do After Checking Someone’s Credit for Renting

Once receiving a person’s application and credit check, here are the next steps to complete. 

1. Approve or deny their rental application: Based on your screening results, make a clear decision.
   1. If you approve: Send a formal approval letter and the lease agreement promptly. This is a great time to provide clear instructions on next steps, such as submitting the security deposit, signing the lease, and setting up utilities.
   2. If you deny: The law requires you to send an Adverse Action Notice. This written notice must clearly state why the applicant was denied (if the decision was based on information from the credit report), provide the name and contact information of the credit reporting agency used, and inform them of their right to a free copy of their report and the right to dispute inaccurate information.
2. Create a rental lease agreement: After notifying a person of their approved application, create a lease agreement for your property. If you use Avail to screen your applicants, you can access lawyer-reviewed lease agreements for free that can be signed online. 
3. Onboard your new tenant: In line with creating a lease agreement, ensure you onboard your new tenant to the platform you’re using to manage your rental property. The tenant can then set up their payment information for rent collection and sign the lease agreement (if not already). 

What Factors Affect a Tenant’s Credit Score?

Various factors can impact a person’s credit score, but not all of them signal alarming financial habits. Below is an overview of factors that affect credit scores.

• Late or missed payments: Payment history accounts for 35% of a FICO® Score, making it the most influential factor. Consistently paying bills on time helps maintain a strong credit score, while late or missed payments can negatively impact it.
• Accounts sent to collections: Creditors may send unpaid debts to a collection agency if they remain unpaid for an extended period, appearing as a negative mark on a credit report.
• Bankruptcy filings: Filing for bankruptcy can have a substantial impact on a credit score and remains on a credit report for seven to ten years.
• High credit utilization: Credit utilization refers to the percentage of available credit a tenant is using; high utilization (above 30%) may indicate financial strain.
• Closing old credit accounts: Closing a long-standing account can reduce the length of credit history and increase utilization, temporarily lowering a score.
• Paying off certain loans: Paying off debt is positive, but reducing active accounts can temporarily affect the credit mix and history length.
• Multiple hard credit inquiries: Multiple recent inquiries for new credit can suggest increased financial activity and cause a temporary drop in a score.

Frequently Asked Questions: Rental Credit Check

When Should You Request a Credit Check From a Tenant?

Request a rental credit check after a prospective tenant completes an initial property tour and pre-screening questionnaire (if provided) to first confirm their eligibility for the rental. Waiting until an applicant demonstrates genuine interest prevents you from collecting unnecessary screening fees and handling sensitive personal information prematurely. 

Once an applicant confirms they want to move forward, invite them to complete a formal application with screening reports to verify their financial qualifications before making a final lease decision.

How Much Does a Rental Credit Check Cost, and Who Pays for It?

A rental credit check typically costs between $25 and $75, depending on whether you request a standalone credit report or a comprehensive package that includes criminal background and eviction history. 

In most states, the applicant pays this screening fee directly through the online application portal when authorizing the report. However, most platforms allow you to choose to cover this cost yourself to attract a larger pool of applicants or stand out in competitive rental markets.

How Long Does a Tenant Credit Check Take to Process?

A digital tenant credit check processes almost instantly once the applicant submits their required information and completes the identity verification prompt. Most screening reports upload to your online dashboard within 30 minutes of authorization. 

The overall timeline depends primarily on how quickly your prospective tenant fills out their application form and authorizes the TransUnion credit check.

What Is a Good Credit Score Threshold for a Rental Applicant?

Most landlords look for a minimum credit score of 650, though appropriate thresholds vary depending on your local rental market and property class. A single three-digit credit score should never be your sole evaluation criteria. 

You should analyze the credit score alongside their total debt-to-income (DTI) ratio, historical on-time payment records, active accounts in collections, and verified monthly income.

What Steps Must You Take if an Applicant Does Not Meet Your Credit Criteria?

You must issue a formal adverse action notice to comply with the Fair Credit Reporting Act (FCRA) if an applicant fails to meet your established screening criteria due to information on their credit report. 

This written notice must inform the applicant of the denial, provide the contact details of the credit bureau that generated the report (such as TransUnion), and explain their right to obtain a free copy of the report within 60 days. 

Alternatively, if their credit profile is conditionally acceptable, you can offer conditional approval by requiring a qualified co-signer, a lease guarantor, or an increased security deposit where permitted by state law.

Can You Run a Rental Credit Check on an Applicant Without a Social Security Number?

Yes, you can screen applicants who do not have a Social Security Number (SSN) by collecting an Individual Taxpayer Identification Number (ITIN) or processing an international background report. 

If an applicant lacks both an SSN and an ITIN, you can evaluate their financial reliability by requesting official credit reference letters, reviewing recent bank statements, verifying direct employment income, and contacting prior housing providers for detailed rental payment references.

Are Landlords Legally Required to Accept Tenant-Provided Credit Reports?

The law requires landlords in certain states and municipalities to accept reusable or portable tenant screening reports if a recognized consumer reporting agency generated the report within a specific timeframe (typically 30 days). 

People call these portable screening reports or renter profiles; these documents allow applicants to apply to multiple properties without paying repeated screening fees. Always check your specific state and municipal landlord-tenant laws to confirm whether accepting portable screening reports is mandatory in your jurisdiction.

Request Credit Checks With Avail

Requiring a rental credit check is one of the most critical steps in your tenant screening process. Whether you want to analyze an applicant’s historical payment habits, verify debt obligations, or check credit score thresholds, Avail provides accurate, TransUnion-powered screening reports that help you select your next tenant with total confidence.

With Avail, you get:

• Comprehensive financial insights: View TransUnion credit scores, payment history, debt-to-income indicators, active accounts in collections, and public legal records in one organized report.
• Automated FCRA compliance: Streamline applicant authorization and legal consent automatically during the digital application workflow — ensuring full compliance with privacy laws without extra paperwork.
• Flexible screening bundles: Request a standalone credit report or bundle it with nationwide criminal background and eviction history reports to fit your specific screening criteria.
• No out-of-pocket cost options: Allow prospective renters to pay their screening fee securely through their dashboard, or choose to cover the fee yourself as the landlord.

Create an account or log in to screen prospective tenants with landlord software designed with landlords and their tenants in mind.