How to Obtain a Credit Report As a Lender

Obtain a credit report as a lender to verify creditworthiness.

As a lender, you need to verify the creditworthiness of people you are considering lending to. That way you can reduce the chance that you will make a loan to someone who wouldn't pay you back. To obtain a credit report on a person, you must have a legitimate business need to have the report. The Fair Credit Reporting Act, or FCRA, considers potential creditors, employers, government agencies and insurance companies to have legitimate business needs to obtain credit reports.

Things You'll Need

• Consent form
• Business client account

Instructions

1. Obtain authorization from the person whose credit report you need. The authorization should be given in writing. You can type up your own authorization form. Make sure the form states that the individual is giving consent to you to pull his credit history, and that it gives the reason consent is being given. There should be a blank space on the form for the individual's name, a blank space for your name, and a blank space for him to sign and date the form.

2. Contact any of the three credit reporting bureaus, TransUnion, Equifax and TransUnion (see Resources section). Advise the bureau representative that you would like to establish a business client account that will allow you to run credit reports on potential customers. The fee to establish a business client account varies by bureau. Once you are signed up, you will be provided with access to an online portal that will allow you to run credit reports.

   Because one of the bureaus might have information that is not reflected on another bureau's report, you'll have to determine whether you want to establish a business client account with one bureau or go with all three. Many businesses choose only one bureau.

3. Log into the online portal with the information provided to you by the credit bureau. Enter the customer's information to run his report.

4. Review the credit report. If you deny credit to the individual based on information in his credit report, The Fair Credit Reporting Act requires that you advise her of this fact.

References

• LawDog Third Parties
• Federal Reserve Bank Of San Francisco: Consumer Information
• The Fair Credit Reporting Act
• All Business: How Can I Run A Credit Check On A Person
• TransUnion: Permissible Purpose

Resources

• TransUnion: Client Technical Services
• Equifax:Contact Us
• Experian