What Is a Tenant Credit Check?

A tenant credit check is a consumer report used as part of the rental screening process. It can help a landlord evaluate how an applicant has managed credit obligations by reviewing information such as payment history, account status, balances, delinquencies, collections, and other credit-related details that may appear on the report.

Depending on the report and package selected, a landlord may also receive a credit score. AAOA’s tenant screening credit reports use a soft credit inquiry, which means the inquiry does not affect the applicant’s credit score.

How to Run a Credit Check on a Tenant

If you are wondering how to run a credit check on a tenant, the process can be broken into a few practical steps.

What Does a Tenant Credit Report Show?

The exact information can vary by credit bureau, report type, and applicant credit file. A landlord credit report may include:

• Credit score, when included with the selected report or package
• Payment history on reported credit accounts
• Open and closed accounts and their reported status
• Outstanding balances and debt obligations shown on the credit file
• Late payments, delinquencies, and collections when reported
• Recent addresses associated with the credit file
• Other credit-file information, such as bankruptcy, foreclosure, or inquiries, when present and reportable

A credit report can provide useful financial context, but it does not by itself verify an applicant’s current income, employment, eviction history, or criminal history. Those items should be evaluated through the appropriate application information, verification process, or separate screening report.

Tenant Credit Check vs. Full Tenant Screening

A rental credit check answers one important part of the screening question: how has the applicant handled credit obligations? A broader tenant screening package can provide additional information when you need a more complete view.

Does a Tenant Credit Check Hurt the Applicant’s Credit Score?

No. AAOA states that its tenant screening credit inquiries are soft pulls. A soft credit pull does not affect the applicant’s credit score.

For landlords, this means you can include credit information in a rental screening process without creating a hard inquiry on the applicant’s credit file through AAOA’s screening service.

What Should Landlords Look for in a Tenant Credit Check?

A tenant credit report is most useful when it is reviewed against clear, consistently applied rental criteria. Rather than focusing on one number or one isolated event, consider the overall pattern shown by the report.

• Payment patterns: Are accounts generally paid as agreed, or are there repeated late payments?
• Recent delinquencies or collections: Look at recency, frequency, and the type of obligation involved.
• Account status: Review open accounts, closed accounts, and any accounts reported as past due.
• Debt obligations: Consider the obligations shown on the report together with income information you have separately verified.
• Credit-file consistency: Compare addresses and other credit-file information with the rental application when appropriate.
• Overall context: Use the same written screening standards for every applicant rather than making ad hoc decisions.

Use Tenant Credit Reports Fairly and Consistently

Tenant credit reports and tenant screening reports are consumer reports. The federal Fair Credit Reporting Act applies when landlords use consumer reports for rental decisions.

According to the Federal Trade Commission, if information in a consumer report contributes in whole or in part to an adverse action, the applicant must receive an adverse-action notice. Examples can include denying an application, requiring a co-signer, requiring a larger deposit, or charging a higher rent based on information in the report.

Review the FTC’s guidance for landlords using consumer reports, and check any additional federal, state, or local requirements that apply to your rental property.

This information is educational and is not a substitute for legal advice.

Why Use AAOA for Tenant Credit Checks?

AAOA offers tenant credit checks as part of its online tenant screening services for landlords, property managers, real estate professionals, and other housing providers with a permissible rental-screening purpose.

• Soft credit pulls: AAOA credit inquiries do not affect the applicant’s credit score.
• 24/7 ordering: Tenant screening orders can be placed online at any time.
• Flexible payment: AAOA offers tenant-pay and landlord-pay options on screening packages.
• Tenant cooperation: Applicants can verify identity and authorize release through a secure online process without the landlord first becoming underwritten.
• Optional underwriting: Approved underwritten users can receive credit reports at checkout without waiting for tenant cooperation.
• Credit bureau options: TransUnion is the default credit report. Underwritten users may have the option to select Experian, TransUnion, and/or Equifax.
• Membership is optional: Paid AAOA membership is not required to order screening services, although some membership types may receive screening discounts.

Tenant Credit Check FAQs

What is a tenant credit check?

A tenant credit check lets a landlord review an applicant’s credit report and, depending on the screening package, a credit score. It can help show payment history, account status, balances, delinquencies, collections, and other credit-related information used as part of a rental decision.

Does an AAOA tenant credit check affect the applicant’s credit score?

No. AAOA states that its tenant screening credit inquiries are soft pulls, so they do not impact the applicant’s credit score.

How do I run a credit check on a tenant?

Use a rental application with appropriate authorization, choose an AAOA tenant screening package, and submit the applicant information. With tenant cooperation, the applicant receives a secure email to verify identity and authorize release of the credit report. Underwritten users can receive credit reports without the tenant cooperation step, but still need the required signed rental application.

Is a tenant credit check the same as a tenant background check?

No. A credit check focuses on credit history and credit-related information. A broader tenant screening or background check can include additional reports such as eviction history, criminal records, identity-related screening, and verification services, depending on the package ordered.

How quickly can I get a tenant credit report through AAOA?

AAOA accepts tenant screening orders 24/7. With tenant cooperation, the credit report and score become available after the applicant verifies identity and authorizes release. Approved underwritten users can receive credit reports at checkout without waiting for tenant cooperation.

What should a landlord look for in a tenant credit report?

Review the report consistently against your written rental criteria. Relevant credit factors can include payment patterns, recent delinquencies, collections, account status, balances, and other financial obligations. Income, employment, eviction history, and criminal records come from separate information or screening reports rather than the credit report itself.