In most US states, yes, if your written screening criteria say so and you apply them to everyone. Two places draw a harder line. Ontario's human rights rules say a lack of credit history should not be viewed negatively, and Colorado bars considering a missing credit score for applicants using a housing subsidy. A conditional approval still triggers a notice. This is information, not legal advice.
Is it legal to deny an applicant with no credit history?
In most of the US, yes. No federal statute lists credit history as a protected characteristic, so a written rule that requires a credit file is generally lawful when every applicant is held to it. The risk is not the rule itself. It is a rule applied to some applicants and waived for others, or one that was never written down.
A thin credit file is common among young renters, newcomers and people who pay cash. That is why the better question for a property manager is usually not "can I deny" but "what do I accept instead", and the answer belongs in your criteria before the listing goes live.
What does Ontario say about a thin credit file?
Ontario is the clearest. The Ontario Human Rights Commission's policy on rental housing summarizes Regulation 290/98 under the Human Rights Code: a landlord may request rental history, credit references and credit checks, and "a lack of rental or credit history should not be viewed negatively."
The same policy says income information must be considered together with rental and credit information, that a rent-to-income cut-off such as 30 percent is illegal outside rent-geared-to-income units, and that a guarantor may be required only if the landlord asks the same of every tenant. So in Ontario, "no credit history" cannot be the reason on its own, and a guarantor demanded only from applicants without a file is a problem.
What does Colorado say?
Colorado protects applicants who rent with a housing subsidy. Under C.R.S. 38-12-904, a landlord who uses financial information to assess a subsidized applicant shall not consider or ask about the applicant's credit score, an adverse credit event or the lack of a credit score, unless federal law requires it.
For every applicant, Colorado also caps the lookback: no rental or credit history older than seven years before the application date. A denial needs a written notice stating the reasons.
Is a co-signer or bigger deposit a denial?
Under federal law it is treated like one. The FTC's guidance for landlords lists requiring a co-signer and requiring a larger deposit as adverse actions. If a consumer report played any part, even a small one, you owe the applicant an adverse action notice. If you used a credit score, the notice must also include the score, its source and date, the range of the scoring model and the key factors that hurt it.
A thin file often produces no score at all, so the notice should say the report did not contain enough information, and name the screening company that supplied it.
| Alternative to a credit file | Where to check the limit |
|---|---|
| Guarantor or co-signer | Ontario: only if required of all tenants. US: an adverse action notice applies |
| Larger deposit | US: an adverse action notice applies. Ontario: damage deposits are not permitted |
| Rental history and landlord references | Colorado: seven-year cap on what you consider |
| Proof of income | Ontario: weighed together, never a fixed ratio. Colorado: capped at 2x the rent |
Where does this go wrong in practice?
On the first inquiry. A prospect writes "I'm new to the country and don't have credit yet, can I still apply?" and the answer depends on who reads it. One agent says no. Another says "bring a co-signer". In Ontario the first answer is risky and the second is only safe if every tenant gets the same rule.
Write the alternative into your criteria per market and give everyone the same answer. LetHub is AI leasing software for property managers: it answers rental inquiries by text, chat, email and phone in about 30 seconds, day and night, qualifies renters, books tours and runs ID-verified self-showings, using the answers you set for each unit. For the related rules, see whether the 3x rent income rule is legal and when you can require a guarantor. Book a demo to see it on your listings.
No credit history: FAQ
What should a denial notice say when there is no credit score?
Name the screening company, say it did not make the decision, explain the right to a free report within 60 days and to dispute it, and state that the report lacked enough information. Our guide to the three parts an FCRA denial notice needs covers the format.
Can I require a co-signer only from applicants without credit?
In the US you can, but each one is an adverse action that needs a notice. In Ontario the Human Rights Commission says a guarantor may be required only if the landlord has the same requirement for all tenants.
Does a voucher holder need a credit check in Colorado?
You may not consider or ask about their credit score, adverse credit events or lack of a score unless federal law requires it. Income can be checked only to confirm it covers twice the tenant's share of the rent.
How far back can I look at credit history?
Most adverse credit items drop off consumer reports after seven years under the Fair Credit Reporting Act. Colorado also bars considering rental or credit history older than seven years before the application.
