Just because you don’t run a bank and issue loans to people doesn’t mean that your business can’t benefit from looking through credit reports. There are plenty of instances where looking at a person’s credit report can tell you exactly what kind of person you’re dealing with. In fact, credit reports come in awfully handy for anyone who’s trying to do these 2 things:

1. A tenant applicant screening

If you’re looking for someone new to live in your rental house or apartment, you can’t find anyone good without looking through credit reports! After all, a person’s credit report will show you how responsible he is with money. If you see a ton of delinquent payments and outstanding bills, you probably don’t want this person renting out your property. What are the odds that he’ll actually pay his rent on time?

Bottom line – you can’t expect to do a thorough tenant application screening without looking through people’s credit reports. If you do, you’re putting your rental property at risk! And, if you wind up with a tenant who doesn’t pay his rent – forcing you to try and make the mortgage payment without him – it could wind up damaging your credit, too! It’s a hassle you simply don’t need, especially when there are so many better potential tenants out there.

2. An employee background check

Even though you’ll be paying your employee a salary – and not the other way around – credit reports can still help you find a good one. After all, if someone is irresponsible with their money, will they be irresponsible at work, too? Looking through an applicant’s credit report during an employee background check is standard procedure because credit reports can tell you so much. If you find an applicant that has a ton of financial baggage – that shows off a multitude of financial mistakes – you may want to think twice about hiring this person to represent your company.

One final tip – credit reports aren’t the only thing you should be looking at when you’re trying to fill a job opening or looking for a new tenant. If you want to get a full picture of what someone is really like, you’ll also need to do a criminal record search. After all, someone may have perfect credit – but has all kinds of unfavorable information that pops up in a criminal record search that makes them someone you want to stay away from!