Credit Report
Employment Credit Report:
An employment credit report is a version of a credit file used by employers to evaluate a candidate’s financial responsibility for certain roles. It typically excludes credit scores and focuses on account history, payment patterns, and public record data relevant to positions involving financial trust, cash handling, or sensitive information.
Tenant Credit Report:
A tenant credit report is used by landlords or property managers to assess a rental applicant’s creditworthiness. It includes credit score, payment history, outstanding debts, and collection accounts to help determine whether an applicant is likely to meet lease obligations.
Compliance note
- Both employment and tenant credit reports are consumer reports regulated under the Fair Credit Reporting Act (FCRA).
- Employers and landlords must have a permissible purpose and obtain written authorization before requesting a credit report.
- Applicants must be provided pre-adverse and adverse action notices if a decision is based in whole or in part on credit report information.
- Employers should only use credit reports when job-related and consistent with business necessity, per EEOC guidance and state laws.
Related Terms and Posts
- Consumer Report
- Permissible Purpose
- Disclosure and Authorization
- Adverse Action
- FCRA Summary of Rights
- Understanding the Role of Credit History Checks in Employment Screening (Blog)
- What Credit Score Do You Need for Successful Apartment Rental? (Blog)
- How Background Checks Protect Landlords and Tenants (Blog)
Frequently Asked Questions
A: It includes payment history, account status, and public record data, but typically excludes a credit score.
A: No. Credit checks should only be used for roles involving financial risk or fiduciary responsibility, and some states restrict their use.
A: It provides the applicant’s credit score, debt levels, and payment patterns to help landlords assess rental reliability.
A: Yes. The FCRA requires written authorization before obtaining any credit report for employment or rental purposes.
DISCLAIMER: The information provided in this glossary is for general informational purposes only and should not be construed as legal advice. While we strive for accuracy, EDIFY Background Screening does not guarantee that the definitions or explanations are complete, up to date, or error-free. Employers should always consult with competent legal counsel to ensure compliance with applicable laws and regulations.
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