How to Run a Credit Check on a Tenant
- 1). Ask each of your prospective tenants to provide you with a full name, date of birth, current or last physical address and Social Security number. You must disclose that you are requesting this information to run a credit check, and in most states you must get each applicant’s written, signed permission to check his credit history. You cannot use the information for any other purpose, including performing a background or criminal history check, without first obtaining separate written permission from the tenant for this purpose.
- 2). Choose one of the three major credit bureaus--Equifax, TransUnion and Experian. These are separate, independent credit reporting agencies that collect and report information from creditors. Creditors choose the bureaus to which they report, so it is possible for one bureau to report delinquent or discharged debt of which the other two bureaus have no knowledge. For this reason, you may want to obtain a credit report from all three bureaus. Alternatively, you can run a credit check using one bureau, then use the other two only if you come across a credit history that deserves further inquiry.
- 3). Contact the credit bureau you choose. You can do this online or via telephone, although online credit histories are available 24 hours a day. Enter or provide the full name, date of birth, last-known address and Social Security number of the individual on whom you wish to run a credit check. On the next page, if working online, click the name of the tenant to confirm his information.
- 4). Review the credit report for the tenant you searched. Start at the top of the credit report (TransUnion and Experian) or right side (Equifax) for a general summary. This will provide you with the overall number of delinquencies, discharges, foreclosures and other negative reports. Credit items, called “trades,” are listed underneath and arranged from newest to oldest account. Look specifically for trades that show delinquencies exceeding 30 to 60 days, discharges and judgments; these are major indicators that the tenant has a history of non-payment and you may want to choose another applicant.
