How to Run a Credit History
Whether you're screening a tenant for an apartment rental or offering a line of credit to a customer, it's important to first check the applicant's credit history. Obtaining a credit report is a good way for businesses to minimize their risks and alert them to potential future problems with the applicant. The information provided in the credit report also will allow businesses to verify that the identifying information provided in the credit application is truthful.
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Instructions
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Obtain a signed application from your applicant giving you permission to run a credit history. Federal law requires you to obtain written permission from applicants. In addition, according to the Fair Credit Reporting Act, credit reports can only be obtained for acceptable business purposes. Permissible situations include pulling reports in connection with a credit transaction, for employment purposes, when underwriting insurance policies, for professional licensing, reviewing previously obtained accounts, or other legitimate business needs.
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Sign up for an account with one of the three major credit bureaus. The three bureaus include Experian, TransUnion and Equifax. Each company varies in how much they charge for each report and the plans they offer. It's best to read through the terms for each bureau and decide which one has a package that most closely fits your needs. For example, TransUnion has specialized sections for specific types of businesses, such as rental property owners, and Experian offers credit risk evaluations. It's also possible to use third-party credit screening websites if you prefer.
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Log in to your account and enter the credit information for your applicant. At a minimum, you'll need the applicant's full legal name, Social Security number, date of birth and current address. If you signed up for a pay-as-you-go plan, you'll need to enter your payment information before submitting your request. Wait for the results. The time it takes to receive the results will vary depending on the company you choose to go with. Some offer instant access to reports, while others can take a few days.
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