The Fair Credit Reporting Act (FCRA) is a U.S. federal law governing consumer reports — including the credit and background checks landlords use to screen applicants. It requires a permissible purpose and the applicant’s consent to pull a report, and it sets duties when you act on one.
The key rule for landlords is “adverse action”: if you deny an applicant (or charge more, or require a co-signer) based even in part on a consumer report, you must give specific notice — including the reporting agency’s details and the applicant’s right to dispute. Because that carries legal consequences, the denial decision should stay with a human. Rules can change — this is general education, not legal advice.
This is general educational information, not legal or tax advice. Rules vary by state and locality and change over time — check your local law and confirm specifics with a qualified professional.