Running a business of any size can require you to need the ability to measure financial risk. For many companies, the ability to see potential customer’s credit scores could help you to make a more educated assessment. A credit score is an excellent way to gauge many factors of potential business.
Types Of Businesses That Might Need To Do a Credit Pull
- Personal Credit and Finance Companies
Any company that is offering their clients personal finance and credit options will need to be able to access their credit scores. This will allow the company to gauge the likely hood that the customer will pay them back if they loan them the money they are asking for.
- Bankruptcy Attorneys
Attorneys that specialize in this industry will need to be able to view clients Credit reports so they know what they will be facing in court. They will want to have all the details found on a credit report to prepare their case and give their clients the best advice possible.
- Rental Companies
This industry needs access to potential renters’ credit history to decide on rather or not to allow them to rent a property. They will also use the score to decide how much of a deposit they need to secure before letting the potential renter sign a lease.
- Car Dealerships
If a dealership offers in-house financing it will be necessary for them to have access to potential buyers’ credit information. This will let them decide if they want to loan the customer the money or not.
What You Want Your Credit Pulling Software to Show
When you are searching for software to pull credit reports on your potential clients, you will want to make sure it can display all the info you need to make an educated risk assessment.
Credit Pulling Software Should Display
- Payment history for the last 7 years on every account the client has.
Knowing their payment history will help you to gauge the amount of risk associated when loaning them money or extending credit.
- Balance and limits of all the revolving credit lines the client has access to.
This allows you to see if they can responsibly use the credit they have. You can also see if they have recently racked up a lot of debt.
- All accounts that the client currently has in collections. This is a red flag! If someone already allowed an account to enter collections they may not be a safe client to work with
- Clients Credit Scores from at least 1 of the 3 bureaus. This score will range between 300 and 850. Anything over 650 is good.
Using Info From Credit Pulls to Focus Marketing
Another great way any company can use credit pulls is using it to locate potential customers. If you know the ideal credit score of your dream customer you can find customers that fit those perimeters and aim your marketing at them.
Focused marketing can allow you to attract the type of customers that can benefit from what you are offering and allow you to see better results. This will allow you to get a lot more “bang for your buck”. There is no need to waste money advertising to customers that will not need your product.
Find the Right Credit Pulling Software Today
You now know why you need access to potential clients’ credit info, and what you want the software you chose to provide. Now all that is left is to find a company that offers everything you need. Take some time and do your research and you will be looking up credit pulls and making more informed choices before you know it.
