Free Notice of Conditional Acceptance (Based on Credit Report)
Conditional acceptance letter when imposing conditions (larger deposit, cosigner, prepayment, higher rent, reduced term) based on the consumer credit report. Combines the conditional terms with the FCRA §615 adverse-action disclosures. Conditional approval IS adverse action under FCRA when based on consumer report.
Free Notice of Conditional Acceptance (Based on Credit Report) — overview
A Notice of Conditional Acceptance (Based on Credit Report) is a conditional acceptance letter combining offer terms (larger deposit, cosigner, higher rent, etc.) with FCRA §615 adverse-action disclosures, used when conditions are imposed based on a credit report.
Generate the Letter
This letter extends a conditional offer subject to specific conditions (larger deposit, cosigner, first + last month prepayment, higher rent, reduced lease term) AND provides the FCRA §615 disclosures required when conditional approval is based on a consumer report.
Conditional approval triggers FCRA: Many landlords mistakenly believe FCRA §615 only applies to denials. It applies to ANY adverse action — including conditional approvals based on a consumer report. This letter combines the conditional terms with the required FCRA disclosures in a single document.
1. Letter Header (From / To)
2. Letter Body
⚠ Conditional approval based on credit = adverse action under FCRA §615
Conditional approval (larger deposit, higher rent, cosigner, prepayment, reduced term) IS an adverse action under FCRA §615 when based in whole or in part on a consumer credit report. You must include the CRA disclosure, dispute rights, and free-report rights. This letter combines the conditional-approval terms with the required FCRA disclosures.
3. Signature
About the Notice of Conditional Acceptance (Based on Credit Report)
Notice of conditional acceptance based on a credit report is required when a landlord extends a rental offer with conditions less favorable than would have been offered to an applicant with stronger credit. Under FCRA §615 (15 USC §1681m), this conditional approval IS an adverse action — many landlords miss this point. The letter must include: (1) clear statement of the conditions imposed (larger deposit, cosigner, first + last month, higher rent, reduced term); (2) the FCRA §615 disclosures (CRA name, address, phone; statement CRA didn’t decide; right to free copy within 60 days; right to dispute); (3) if a credit score was used, the credit-score disclosures (numeric score, range, key factors, date, CRA). State equivalents may apply: California CCRAA Civ. Code §1785, New York GBL §380, others. State security-deposit caps also apply: California allows up to 2 months (unfurnished) / 3 months (furnished); New York HSTPA caps at 1 month; Massachusetts caps at 1 month + last month; many states have caps. Imposing a deposit above the state cap as a “condition” violates state law regardless of the conditional-approval framing.
Key Requirements
- Conditional approval based on consumer report = adverse action under FCRA §615
- Combined letter: conditional terms + FCRA disclosures
- Common conditions: larger deposit, cosigner, first + last, higher rent, reduced term
- Credit score disclosure: numeric score + range + key factors + date + CRA
- State SD caps apply: CA 2 mo unfurn / 3 mo furn; NY 1 mo; MA 1 mo + last; etc.
- State equivalents: CA CCRAA, NY GBL §380, others
Common Mistakes
- Treating conditional approval as not requiring FCRA disclosures (it does)
- Imposing deposit above state cap as “condition” (state law violation)
- Missing credit score disclosure when credit score was used
- Vague conditions (specify amounts and deadlines)
- No acceptance deadline
- Not retaining copy in applicant file
- Failing to apply conditions uniformly across similarly-situated applicants
Best Practices
- Specify each condition precisely with amounts and deadlines
- Verify state SD cap before imposing larger-deposit condition
- Include all FCRA disclosures including credit-score data if used
- Set acceptance deadline 7-14 days
- Apply conditions uniformly across applicants to avoid discrimination claims
- Document the basis in your internal file (not the letter)
- Retain copy for 5+ years
Make screening decisions with full information
An adverse-action notice is only as defensible as the underlying screening report. Tenant Screening Background Check has been verifying renters since 2004 — credit, eviction filings, criminal background, and employment — with proper FCRA permissible-purpose documentation built in.
Order Tenant Screening →
Published by Tenant Screening Background Check
Established 2004 · 20+ Years · All U.S. States & Territories · Statute-Based · Attorney-Reviewed
A Private Eye Reports™ service trusted by landlords, property managers, and attorneys.
⚖ Legal Disclaimer
This letter template is provided for general informational purposes only and does not constitute legal advice. Federal FCRA (15 USC §1681 et seq.) requirements apply to all adverse-action notices based on consumer reports. State equivalents (CA CCRAA/ICRAA, NY GBL §380, others) impose additional requirements in some jurisdictions. For FCRA guidance, visit FTC FCRA and CFPB. Consult a qualified attorney before relying on this template for any adverse-action decision.
