How to Run a Credit Check
A credit check reveals the credit worthiness and financial responsibility of an individual. If you are a landlord, supplier, or employer who needs to perform a credit check on a potential candidate, there are various online services that you can use. With the information provided, you can then make an educated decision on whether to extend your product, services, or offer of employment to the person.
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Instructions
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Ask the candidate for his complete profile, including name, current and previous address, social security number, phone number, and date of birth. You can simply have him fill out an application and then sign another piece of paperwork that gives you permission to run a credit check.
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Sign up with an online tenant or employee screening service like NTNonline.com, E-renter.com or TenantVerification.com. You will be required to pay for a one-time credit check package (about $20 to $30 per candidate). You may be able to subscribe to a monthly service so that you can run these checks on candidates regularly.
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Provide information about your own business, including your name, address, and the purpose for why you need these reports in your online account profile with the service.
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Perform your credit check. Enter the information that you received about the candidate in step one. Fax or email the consent that you received from the candidate to the service provider. Once the provider receives this consent, along with the candidate's information, the company will release the credit report to you. The process can be completed in as little as an hour.
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Tips & Warnings
Consider getting a criminal background check on candidates as well. You can get this information directly from the state court system where the candidate resides--there may be a fee, but this is public information. Some of the online credit check services will also perform this check for a fee. You need a full name, address, and date of birth for the person.
If you are a landlord, you should pay for a basic tenant screening to see if there are any evictions or related lawsuits on the candidate's record. This information may be even more valuable to you as a landlord than a standard credit check.
If you are an employer who declines to hire a candidate based on the results of his credit check, you are required by law to inform him of this per the Fair Credit Reporting Act. See "Credit Checks on Employees - A Good Idea?" under "References" for more information.
Treat the candidate's information with care. Lock it in a drawer or shred it if you no longer need it.
