A credit report is perhaps the single most important tool and should always be run before entering into a lease agreement or hiring a new employee. A consumer credit report contains valuable information and shows the applicant credit history as established with institutions.

Personal Information on Credit Report

• Full Name and Variations Of It (such as maiden names)
• Social Security Number Matching
• Birth Date
• Current and Previous Addresses
• Current and Past Places Of Employment

Public Records and Collection Accounts

• Liens and Judgments
• Bankruptcies
• Foreclosures
• Accounts in collection

Credit History & Current Obligations

• Dates Accounts Were Opened
• Types Of Accounts (revolving, installment loan, mortgage)
• Account Balances and Credit Limits
• Payment History For Each Account, Including Late Payments

Credit Inquiries

• Inquiries made when seeking new credit; too many inquiries in a short time are viewed negatively
• Inquiries made for promotional mailings, by current creditors, and by individual for informational purposes; these inquiries are not viewed negatively

Credit Scores

• The Credit Score is a number that is generated by analyzing the entire credit profile. Scores range from 340 to 850. Typically, the higher the score, the less risk a lender assumes.

Aside from determining whether a prospective person is responsible, has met his or her financial obligations, the credit report provides information useful in conducting the rest of a background investigation. Compare the information with that found in the completed rental application. Does it match? If, for example, an applicant's name or date of birth are not the same, that is a red-flag requiring further inquiry.