Credit Scores and Factors for Acquiring Financing
By U.S. Small Business Administration on October 3rd, 2012
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.
- Using Consumer Credit Reports: What Employers Need to Know
Explains how you, as an employer, can use consumer reports when you hire new employees and when you evaluate employees for promotion, reassignment, and retention as long as you comply with the Fair Credit Reporting Act.
- Credit Reports: What Information Providers Need to Know
Provides guidance for businesses that are reporting consumer credit information to credit reporting agencies, including rules that must be followed under the Fair Credit Reporting Act.
- Using Consumer Credit Reports : What Insurers Need to Know
Details how insurance providers using consumer credit reports to underwrite insurance policies and to screen high-risk applicants must comply with privacy regulations under the Fair Credit Reporting Act.
- Using Consumer Credit Reports : What Landlords Need to Know
Offers a fact sheet for landlords using consumer and credit reports to evaluate rental applications.
- Disposing of Consumer Report Information? New Rule Tells How
Covers how businesses should take appropriate measures to dispose of sensitive information derived from consumer reports. This new federal rule was established to help protect the privacy of consumer information and reduce the risk of fraud and identity theft.
Exclusive: Paychex Small Business Loan Resource Center
- Pre-Employment Checks
Explains the use of personal information, such as credit reports, used in background screening.
- Protecting Financial Information
Provides education and guidance to help financial companies comply with the Safeguard Rule.
Sorry, comments are closed.