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Credit Report Authorization (Consent) Form

A credit report authorization form is a document used to authorize an individual or organization to perform a credit check on an individual. The Fair Credit Reporting Act requires that a third party must obtain consent before looking into someone's credit history.
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Fair Credit Reporting Act Disclosure – This should be given to all individuals before their credit report is run.

Landlord (Tenant) Background Check – Allows a landlord to run a credit report and a criminal background check on an applying tenant.

What to Include

This form should provide the full names of the authorized party and the applicant. In addition, it should include the applicant’s:

  • Social security number;
  • Date of birth;
  • Driver’s license number; and
  • Residential history for the past seven years.

To complete the form, the applicant should sign and date at the bottom.

Though the list of information requested from the applicant might seem like overkill, it provides alternative ways to search for records. While a social security number and name might be sufficient to run some checks, other information can be helping in turning up financial or criminal history – especially if the applicant has ever used a different name or alias.

This form provides broad language that allows a credit report to be generated for any type of legal reason.[1]

Getting Consent to Run a Credit Report

Before a financier, landlord, or any party would like to perform a credit check on an individual, it’s required, under the Fair Credit Reporting Act, that the individual gives consent before their credit is searched.

1. Explain the Purpose to the Individual

person explaining purpose of credit report to applicant

Describe, in full, the purpose of the credit check and ask for all the necessary personal details and information. Emphasize that sensitive information will be safeguarded and provided to them at their request. If this is to be approved for a lease agreement, the individual may be subject to paying a fee to run the credit report (typically between $25 to $75).

2. Completing the Form

person filling out Credit Report Authorization Form on laptop

The authorization form should be completed by the consenter and given to the party handling the credit check. In most cases, an answer will be provided within 24-48 hours in order to view the person’s credit score, outstanding debts, and total credit limit. If an individual has multiple credit queries within a short amount of time, credit reporting agencies will treat all the filings as one search, therefore, not affecting their credit score.[2]

3. Obtaining a Real Signature

applicant providing e-signature using stylus and tablet

Once the form is complete, the consenter must sign the form. Due to the sensitive information that is being looked up, the consenter will have to handwrite their signature or elect to electronically sign through an authorized electronic signature (such as DocuSign, HelloSign, or Adobe Sign).

4. Run the Credit Report

person running credit check on laptop

Depending on the preference of the person running the credit check, the following companies are recommended to run a credit check:

  • Experian – Consenter is emailed and will be required to enter their information and pay a $14.95 fee.
  • MySmartMove – For landlords, the applying tenant will be required to enter their information and pay a $25 fee.

5. Review and Give a Copy to the Consenter (if asked)

applicant receiving results of credit check over the phone

After reviewing the report it’s now time to contact the individual and inform them of their request.

Financiers – If the applicant is applying for a mortgage or a loan usually the credit report will be provided after completion.

Housing – The landlord or property manager will let them know if they were approved (use the approval letter). If rejected, the landlord is required to send a rejection letter or other form of communication informing the tenant the reasons for their rejection.