Credit Scores and Factors for Acquiring Financing

October 3, 2012 in ,

If you’ve ever applied for a charge account, a personal loan, insurance, or a job, there’s a file about you. This file contains information on where you work and live, how you pay your bills, and whether you’ve been sued, arrested or filed for bankruptcy.

Companies that gather and sell this information are called Consumer Reporting Agencies (CRAs). The most common type of CRA is the credit bureau. The information CRAs sell about you to creditors, employers, insurers and other businesses is called a consumer report.

The Fair Credit Reporting Act regulates the collection, dissemination and use of consumer credit information. If your business uses credit reports for the following reasons, there are rules and regulations you must follow to ensure privacy of credit information:

  • To extend credit to your customers
  • As a pre-employment check for potential employer
  • Or furnish customer information to credit reporting agencies

The resources below can provide more information on these requirements and how to comply.

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