One Credit Source – Consumer Credit Reports – What’s Available?
Small businesses make up 99 percent of all U.S. companies and 75% of those are sole proprietorships. Creditworthiness of a sole proprietor or a guarantor may be verified by using a consumer credit report.
According to the Federal Trade Commission, the federal Fair Credit Reporting Act (FCRA) applies when a consumer credit reporting agency furnishes information from its database on an individual business proprietor. Consistent with FTC’s interpretation, you may access a consumer credit report (“permissible purpose”) on the following:
- The owner of an unincorporated business
- General partners
- Individuals who have guaranteed, in writing, the business obligation
- Individuals who have provided you with written authorization approving your review of their personal credit history
NACM Northwest believes you should always obtain written permission to access consumer data. We advise you check with your legal counsel with questions.
NACM Northwest provides access to the following consumer credit reports:
Experian Business Owner Profile
This consumer credit report may be used in conjunction with the BPR when you are relying on the principal’s creditworthiness to extend credit. This report can be ordered by itself or in combo with any other Experian report.
Sample Business Owner Profile (BOP)
OneCreditSource, an NACM Northwest partner, provides consumer credit reports from all three bureaus – Experian, Equifax & Transunion. OneCreditSource provides consumer credit reports, tenant screening, and employment screening reports. Please note: Some states do not allow pre-employment credit checks. Please check your state law.
Note: Each of these products requires separate setup processes and fees to conform to consumer reporting laws and regulations. A fee for a non-invasive business inspection is built into the setup fee for each of these products.