Rental Credit Check: What to Expect

If you’re planning to rent a new place, there’s a good chance your potential landlord will request a credit check as part of the tenant screening process. This helps them assess how reliable you are at making on-time rent payments.

Understanding how rental checks work, what landlords look for, and what they can see on your credit report can help you feel more confident during the application process. This article walks through what to expect, what shows up, and how to prepare for your rental credit check.

What is a rental credit check and how does it work?

A rental credit check is part of the tenant screening process, which helps landlords evaluate the reliability of potential tenants.

According to the Consumer Financial Protection Bureau (CFPB) as of 2021, tenant screening reports may include various types of information such as rental history, employment verification, and credit reports.^[1]

Landlords typically screen applicants in multiple ways, and this usually includes checking a credit report to assess financial behaviors, such as on-time payment, how much debt is owed (such as credit cards and loans), and whether there are any negative marks, such as bankruptcies and foreclosures.^[2] These checks can be done through one or more of the three main credit bureaus (Experian, TransUnion, and Equifax).^[3]

What landlords can see on your credit report

When landlords conduct a rental credit check, they typically review the following information on your credit report:

• Debt accounts: Details of credit cards, loans, and other debts, including current balances and minimum monthly payments.
• Credit utilization: The ratio of your credit card balances to their limits, indicating how much of your available credit you're using.
• Payment history: Records of on-time payments, as well as any late or missed payments on your accounts.
• Negative marks: Information on loan defaults, accounts in collections, bankruptcies, foreclosures, and repossessions.
  ^[2]

Why do landlords require a credit check?

Understanding what landlords look for in a credit check may help you prepare effectively. Landlords screen applicants in a variety of ways, including a credit check. This can also include additional information such as employment and income, eviction history, and criminal background.

When looking for tenants, landlords prioritize finding someone who can pay their rent and pay it on time. Looking at a credit report and information like debt history and on-time payments may help landlords make an informed decision.^[2]

How to prepare for a rental credit check

When planning for a rental credit check, you can do the following to improve your chances of a successful application:

Check your credit report

It may be helpful to check your current credit score and view the information that a prospective landlord would see.

Checking your report for inaccuracies or unfamiliar accounts could help identify errors or signs of identity theft. It may be a good idea to do this a couple of months in advance, giving you time to address any potential discrepancies that you discover.

You can get a free copy from all three credit bureaus (Experian, TransUnion, and Equifax) at AnnualCreditReport.com.^[4] You can also check your credit score, which reflects how lenders may assess your credit risk – generally, the higher the score, the lower the risk you’re perceived to pose. You can check your FICO credit score for free with an Experian account.

Dispute errors

Dispute inaccuracies on your report that could be impacting your score. You have the right to dispute the three credit bureaus for free. Each bureau has its own procedures for filing disputes. If you spot a discrepancy on one report, it may also appear on reports from other bureaus, so it’s often worth checking all three.^[4]

Keep credit utilization low

Credit utilization refers to the percentage of your available revolving credit that you’re currently using. A high utilization ratio may signal to landlords and lenders that you’re overextended, which can negatively affect your credit score.

Experts, including MyFICO, recommend keeping your credit utilization below 30% — and ideally under 10% — to improve your credit health. However, keeping it at 0% may also lower your score, as it indicates you’re not using your available credit at all.

To prepare for a rental credit check, aim to reduce balances, make on-time payments, and avoid running up high card limits. These actions may help lower your utilization rate and increase your chances of passing the landlord credit check.^{[4] [5]}

Avoid applying for new credit

Applying for new credit can result in a hard inquiry, which may temporarily lower your credit score by a few points. Hard inquiries occur when a lender or creditor checks your credit as part of a loan or credit card application. These inquiries typically stay on your credit report for up to two years and may impact your score for one year. In contrast, checking your own credit report is a soft inquiry and does not affect your credit score.^{[2] [6]}

What else do landlords look for in a rental check?

Credit reports may be one aspect of the tenant screening report. It may also consist of rental history, employment verification, criminal background checks, and risk scores:^[2]

• Employment and income verification. A landlord may check the stated employment and income of the prospective tenant.
• Eviction history. Eviction history is part of the rental history check – the most commonly marketed components offered by credit check firms are information on eviction court records and rental payment.
• Criminal background. Criminal background checks are sometimes included by tenant screening companies. Criminal records typically include past felony and misdemeanor convictions.

Do rental checks affect credit scores?

When you apply to rent a property, the landlord may run a credit check. This check could result in either a soft or hard inquiry, depending on how the credit information is accessed.

A soft inquiry does not affect your credit score and is often used for background or pre-qualification checks, viewing your own credit report, employment background checks, requesting utilities, and in many other instances. In contrast, a hard inquiry can temporarily lower your credit score (generally by fewer than five points) and could remain on your credit reports for two years, but a hard pull can only be done with your permission. Hard inquiries usually happen when applying for new credit (like a loan, credit card, or mortgage), and may also occur in some rental applications, depending on the landlord or screening method used. They can also happen in other instances, such as requesting a credit line increase or applying for certain student loans.^[7]

Rental applications are generally reported as soft inquiries, which do not impact your score. TransUnion notes that most rental checks appear this way on their reports, but practices may vary by screening company or landlord.^[7]

If you’re unsure which type of credit check will be used, you may want to ask the landlord directly before submitting your application.^[8]

What to do if you're denied a rental due to your credit report

If your rental application is denied based on information from a tenant screening report, you have specific rights under the Fair Credit Reporting Act (FCRA). Here's what you should know:

Adverse Action Notice

Landlords are required to provide you with an adverse action notice if they deny your application due to information in a tenant screening report.

This notice must include:

• The name, address, and phone number of the company that provided the report​.
• A statement that the decision was based on information from the report​.
• A notice of your right to obtain a free copy of the report within 60 days​.
• Information on your right to dispute the accuracy or completeness of the report​.

An adverse action not only includes being denied a rental, it could also include requiring a co-signer on the rental agreement or lease, asking for a larger deposit, or a higher rent payment than other applicants.^[9]

Disputing errors

If you believe there are errors in your tenant screening report, you may have the right to dispute them. The reporting company is generally required to investigate and correct any inaccuracies within 30 days, though in some cases, they have 45 days. Some states impose shorter deadlines.

You can also:

• Ask the landlord what specific information led to the denial.
• Request a copy of the tenant screening report within 60 days of receiving the adverse action notice, as requested under the Fair Credit Reporting Act (FCRA)
• Review the report for inaccuracies or outdated information.
• Dispute any errors with the reporting company.

If your application is denied due to credit concerns, there may still be other options to explore. Some renters with poor credit may consider alternatives such as applying with a co-signer, offering a larger security deposit, or providing other documentation to strengthen their application.^[9]

Sources

1. Consumer Financial Protection Bureau. "What is a tenant screening report?" https://www.consumerfinance.gov/ask-cfpb/what-is-a-tenant-screening-report-en-2102/.
2. Experian. "What Landlords Look for on a Credit Check." https://www.experian.com/blogs/ask-experian/what-landlords-look-for-credit-check/
3. Consumer Financial Protection Bureau. "List of Consumer Reporting Companies." https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/consumer-reporting-companies/companies-list/.
4. Experian. "Things to Do Before a Credit Check." https://www.experian.com/blogs/ask-experian/things-to-do-before-credit-check/.
5. myFICO. “Credit Utilization: How Much of Your Credit Should You Use?” https://www.myfico.com/credit-education/blog/credit-utilization-be.
6. Experian. "How Multiple Credit Applications Affect Your Credit Score." https://www.experian.com/blogs/ask-experian/how-multiple-credit-applications-affect-your-credit-score/. Accessed April 27, 2025.
7. Experian. "Hard Inquiry vs. Soft Inquiry: What’s the Difference?" https://www.experian.com/blogs/ask-experian/hard-inquiry-vs-soft-inquiry/.
8. TransUnion. "How Renting Can Impact Your Credit." https://www.transunion.com/blog/credit-advice/how-renting-can-impact-your-credit.
9. Consumer Financial Protection Bureau. "What should I do if my rental application is denied because of a tenant screening report?" https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-my-rental-application-is-denied-because-of-a-tenant-screening-report-en-2105/.

About the author

Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.

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