What To Know About Identity Theft And Credit Risk

When it comes to getting a business credit report, most businesses will only refer you to a credit bureau or collectors. Although these are fine sources for obtaining information, at many agencies, you are also hit with an annual charge, finding additional fees at the checkout point. Choosing which agency to apply to depends on what type of information you are looking for.

If you are looking for detailed and complete information, then pay attention while inputting your personal information. Personal and financial information are the two most important pieces of information that credit agencies need to process your information. Before you request the reports, do your research by researching what type it actually is and what kind of information it will be. Some consumer organizations offer free reports as a part of a larger campaign to talk about the importance of credit, so make sure you check for their affiliate links.

The three major credit-reporting agencies are TransUnion, Equifax and Experian. These are the same companies that responsible lenders and banks usually go through for checking your credit rating when you request a loan. Consumer credit reports are also obtainable by contacting these three agencies and requesting a report. In addition to these sources, there are online services that can provide the consumer with the complete report.

A business credit report gives business owners a quick reference point for the credit history of the prospective customer. There are several attack scenarios for a business credit report. The most important are identity theft and credit risk.

Identity Theft

There is not any hard and fast rule to sorting out this type of security, but if the customer's credit history shows any signs of identity theft, it is advisable to avoid such companies. Not all identity theft is the same. There are some common types that seen and using them can worsen an existing credit problem.

Common types of identity theft elements include forged checks and stolen credit card numbers. Another common trend is using the address they have our things in. This is proving that the individual has legitimate use of the property in question. This reduces the normal trail of evidence that would validate the use of the personal address.

Credit Risk

The business credit report does not offer an individual an overall picture of their credit history. Some companies will put up a front to send you a free credit report, and then only reduce the credit report's usefulness by asking for additional information (name, phone number, address, etc.) that can prove a credit history-worthiness can be determined. Not only is it a threat to your business relationship, it also places you at risk for identity theft. It is vital to check your credit history daily to avoid delays and potential issues.

When it comes to tracking and dealing with credit risks in other people's businesses, it is hard to find a company that can offer you a solid, accurate and timely report. Most companies will provide you with a free of charge initial report. If your business is a large or growing organization, then you will probably require a more in-depth risk analysis. But it is time consuming and expensive, a monthly or annual report may bring your costs down quickly.