What is Checked in a Credit Screening?

Is someone ordering your credit report? Are you looking to order a credit report about someone else? There is a lot that a potential landlord, employer, car dealer, or banker can learn from a credit screening. Many people think that the only information available through a credit screening is the credit score, but this is not true. The following are some things that can easily be viewed when checking someone’s credit. Make sure you have permission before pulling someone’s credit report.

Identity – The first thing you’ll want to look for is proof of identity. You know who the person is, but is the information they gave you accurate? The credit screening will reveal information like name, addresses (past and present), spouse’s name, date of birth, employers (past and present), and social security numbers. This is a great way for the person pulling the report to see if the person really is who he or she says they are. Take note of any red flags.

Credit History – This is the juicy part and where most useable information can be found. Credit screenings will tell all about the person’s financial status including, but not limited to, credit. You’ll be able to see how many bank accounts the person has open, how many credit card accounts are active, whether or not the person has any loans, and whether they are personal bank loans, school loans, or loans taken out to pay a mortgage. You’ll also be able to see how long each account has been active for; the older the account, the better. This is not all you’ll see; you’ll also be able to see if the loans have a co-signers and how high their credit limit is. All of this information is geared toward helping a potential loan provider, credit card company, or potential landlord assess if the applicant is a risk.

Public Records – Don’t worry; if you still need more information on the applicant, there is plenty revealed from a credit screening. You’ll be able to see any past evictions, bankruptcies, whether or not they paid their taxes, and if they’ve ever received any civil judgments. Once the previous information has been discovered, you’ll be able to make the best judgment on whether or not to approve the applicant for a credit card, loan, housing, or employment.

Remember, and we cannot stress this enough, before pulling someone’s credit report or before asking a background checking company to pull documents for you, make sure you have the applicant’s consent.

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