Soft credit checks for renters — what landlords and applicants should know

Answer

Intro: A soft credit check is a low-impact review of a renter’s credit profile often used during tenant screening. Unlike a hard inquiry from a loan application, a soft pull generally does not affect the applicant’s credit score, but it still provides landlords useful information about payment history, public records and identity verification.

Main part: Landlords and screening services use soft checks for quick pre-screening or when they want to confirm identity and credit snapshots without penalizing an applicant. A soft check typically shows an applicant’s credit score (or a score range), recent accounts, public records (evictions, bankruptcies) and collection activity — the depth of information depends on the consumer reporting agency and the screening product. Screening companies commonly offer soft pulls for an initial pass and then a full consumer report for final approval.

Under the federal Fair Credit Reporting Act (FCRA), landlords who rely on consumer reports must have a permissible purpose and usually obtain the applicant’s written or electronic authorization. If you deny housing — or impose different terms — because of information in a report, you must follow FCRA notice rules (pre-adverse and adverse action notices) and give the applicant the report source and a summary of their rights. Many landlords therefore ask applicants to sign a consent form before running any report.

Practical points:

• Soft pulls do not lower credit scores and are suitable for initial screening.
• If you plan to take adverse action based on the report, prepare to provide required notices under FCRA.
• Screening services typically charge between about $10 and $50 per report; policies vary by vendor.
• Use soft checks alongside income verification, references and rental history to form a complete picture.

Final note: Screening practices and disclosure obligations vary by state and platform, so it’s advisable to consult a licensed attorney or experienced property manager when you design consent forms, establish screening criteria, or plan to deny or condition tenancy based on a consumer report. Clear consent and consistent procedures reduce legal risk and help attract qualified renters.