How to Run Customer Credit Reports
Reviewing a customer's credit report to determine creditworthiness before you provide a loan or service helps minimize your risk. The credit bureaus consist of three large companies: Experian, TransUnion and Equifax. Loans, government claims, judgments or unpaid bills may be reported to one or all three of the credit bureaus, so choosing only one report might provide incomplete information. Purchasing a credit report directly from one of the main bureaus might prove too expensive if you have a small business. Third-party services are also available and may offer more cost-effective solutions.
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Instructions
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Calculate the number of credit reports you expect to obtain each month. If you need to review credit applications occasionally, search for a credit service with an affordable one-time fee. If you plan to purchase numerous reports, search for a provider who offers a cost effective plan for multiple reports.
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Research credit providers. Visit the Experian, TransUnion and Equifax websites to research product offers and cost differences for business packages. Call the credit bureaus to determine if it offers all three reports for an extra fee and discuss package options and payment.
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Check third-party credit reporting services, such as Credco, AAA Credit and CreditReport.com. Review pricing options and call to discuss plan options.
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Decide on your provider and download the provider's application documents, which include a credit application and a notice called "A Summary of Your Rights Under the Fair Credit Reporting Act," which you must provide to your customer by law. The credit service should also discuss any rules specific to your state and provide additional documents if necessary.
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Give the customer a credit application to complete and sign. Most applications include "A Summary of Your Rights Under the Fair Credit Reporting Act" notice on the back of the application; your customer's signature confirms she has received notice. Make a copy of the notice for the customer if she requests it.
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Submit the credit application and make your payment if you haven't already. Check your state's rules about keeping credit application, as some states require business owners to keep copies of credit information behind locked doors.
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