What a credit check actually shows and who can run one
A credit check pulls information from one of the three major credit bureaus — Equifax, Experian, or TransUnion — to show a person's borrowing history and payment record. The report includes accounts they hold or have held, how much they owe, whether they pay on time, and any collections or judgments against them.
You can only run a credit check on someone if you have a permissible purpose under the Fair Credit Reporting Act (FCRA). This is a federal law that limits who can access credit reports and why. The most common permissible purposes are: you are considering lending them money, you are their employer or potential employer, you are a landlord screening a tenant, or you are a creditor they already owe money to. Personal curiosity is not a permissible purpose, even if the person is a family member or friend.
If you run a credit check without a permissible purpose, you can face federal penalties. The person whose report you pulled can sue you for damages, and the Federal Trade Commission can fine you. This applies whether you pull the report yourself or ask someone else to do it.
Key Takeaways
- You can only pull a credit report if you have a legal reason — lending money, hiring, renting, or collecting a debt — not out of curiosity.
- Most employers and landlords use a third-party background check company rather than pulling the report themselves, because these companies handle the legal requirements.
- The person whose report you pull will usually find out, because most credit checks leave a record that shows up on their own credit report.
- If you are a lender or landlord, you must tell the person in writing that you ran a credit check and give them a copy of the report if you deny them based on it.
- Running a credit check without permission or without a legal reason is illegal and can result in lawsuits and federal fines.
How to pull a credit report as an employer or landlord
If you are hiring someone or renting to someone, you will need to use a consumer reporting agency — a company licensed to pull credit reports on behalf of businesses. You cannot call the credit bureaus directly and ask for a report; you must go through an intermediary that handles the legal paperwork.
The most common consumer reporting agencies are Equifax, Experian, and TransUnion themselves (they sell reports directly to businesses), plus companies like LexisNexis, Clarity, and Checkr that specialize in employment and rental screening. Search for "employment background check services" or "tenant screening services" in your state to find providers. Many will let you set up an account online and pull reports within hours.
Before you pull the report, you must get written permission from the person. For employment, this is usually a checkbox on the job process or a separate form. For rental, it is typically part of the lease process. The form must clearly state that you will be obtaining a credit report and must be signed or electronically acknowledged by the applicant.
After you pull the report, you must follow the FCRA's adverse action notice rule: if you deny the person the job or the apartment based on information in the report, you must give them a copy of the report and a written explanation of why you denied them. You must also tell them they have the right to dispute the information with the credit bureau.
How to pull a credit report as a lender
If you are considering lending money to someone — whether as a personal loan, a car loan, a mortgage, or a credit card — you can pull their credit report directly from the credit bureaus or through a loan servicing platform that integrates with them.
To pull a report yourself, you will need to set up an account with one or more of the three bureaus. Equifax, Experian, and TransUnion all offer business accounts for lenders. You provide your business information, tax ID, and the reason you need access (lending), and they verify you are a legitimate business. The setup process takes a few days to a week.
Once your account is active, you can pull reports on demand by entering the person's name, date of birth, Social Security number, and address. The report arrives when ready or within minutes. Most lenders pull from all three bureaus to get a complete picture, though you can pull from just one if you prefer.
Like employers and landlords, you must tell the person you pulled their report and give them a copy if you deny them credit based on it. You should also tell them which bureau you pulled from, so they know where to dispute any errors.
What shows up on someone's credit report when you pull it
When you run a credit check, the person will see a record of it on their own credit report. This record is called a hard inquiry or hard pull. It stays on their report for two years and can slightly lower their credit score — usually by a few points, though the impact is small if they have only one or two inquiries.
The person will see the name of the company or lender that pulled the report, the date it was pulled, and the reason (employment check, credit process, rental process, etc.). They cannot see the actual contents of the report you received, but they can order their own copy from the same bureau to see what you saw.
If you pull a report without permission or without a permissible purpose, the person will still see the inquiry on their report. This is often how people discover that someone pulled their credit without authorization — they review their own report and see an unfamiliar company name. They can then dispute the inquiry with the credit bureau or file a complaint with the Federal Trade Commission.
The difference between a hard pull and a soft pull
A soft inquiry or soft pull is a credit check that does not show up on the person's credit report and does not require their permission. Soft pulls are used by companies checking your credit for pre-qualification offers, by creditors monitoring existing accounts, or by you checking your own credit. They do not affect credit scores.
A hard inquiry is a credit check that shows up on the person's report and does require permission. Hard pulls happen when you formally explore for credit or when an employer or landlord screens you. Hard pulls can lower your score slightly and stay on your report for two years.
If you are running a credit check on someone as an employer or lender, you are pulling a hard inquiry. You cannot use a soft pull to screen someone without their knowledge, because soft pulls are not designed for that purpose and would not give you the full information you need anyway.
What happens if you run a credit check without permission
Running a credit check without a permissible purpose or without the person's consent is a violation of the Fair Credit Reporting Act. The person can sue you in federal court for actual damages (money they lost as a result), statutory damages of $100 to $1,000 per violation, and attorney's fees. They do not have to prove they were harmed — the violation itself is enough to win the case.
The Federal Trade Commission can also investigate and fine you. If the FTC finds you violated the FCRA knowingly, the fine can be up to $43,792 per violation (this amount adjusts yearly). If you violated it recklessly, the fine can be up to $4,379 per violation. These are not small penalties.
Additionally, if you are a business and you use a consumer reporting agency to pull reports illegally, the agency itself can face penalties and may drop you as a client. Many agencies have strict compliance teams that audit their clients to make sure they are following the law.
How to get a copy of someone's credit report if you have a legal reason
If you have a permissible purpose, the steps depend on your role. As an employer or landlord, contact a consumer reporting agency in your state and set up an account. As a lender, set up an account directly with Equifax, Experian, or TransUnion, or use a loan platform that integrates with them. As a creditor collecting a debt, you may be able to pull a report through a debt collection agency or directly from the bureaus if you have an established account.
You will need the person's full name, date of birth, Social Security number, and current address. Some bureaus also ask for a phone number or email. Have this information ready before you contact the agency.
After you pull the report, keep a record of when you pulled it, which bureau you pulled from, and the permissible purpose. If the person later disputes the inquiry or files a complaint, you will need to show that you had a legal reason to pull it.
Frequently Asked Questions
Can I run a credit check on a family member or friend?
No, not unless you have a permissible purpose. Wanting to know their financial situation is not a legal reason. If you are considering lending them money, you can pull a report, but you should tell them first. Running a check without permission is illegal even within families.
Will the person know I ran a credit check on them?
Yes, in most cases. Hard inquiries show up on their credit report, and they will see the name of the company or lender that pulled it. They may not find out when ready, but they will see it when they check their own report or when they explore for credit elsewhere and see the inquiry listed.
Can I run a credit check before making a job offer?
Yes, but you must get written permission first. Most employers include a credit check authorization form in the job process or send it after the interview but before the offer. You cannot pull a report on someone who has not consented, even if they are a finalist for the job.
What if I find errors in someone's credit report?
You cannot fix errors in someone else's report — only they can dispute them with the credit bureau. If you find errors while screening someone, you should tell them what you found and let them know they have the right to dispute it. Some employers and landlords will delay their decision to give the person time to correct the errors.
Do I need permission to pull a credit report on a business or company?
Business credit reports are not covered by the FCRA, so the rules are different. You can generally pull a business credit report without permission if you have a business reason. However, some states have their own rules, so check your state's laws before pulling a business report.