If you evaluate people using a FICO you may not be seeing the true credit picture. No, it isn’t FICO. It is misleading information in the Credit Bureau data base. Here are some of the big reasons reported by FICO that can dramatically alter a person’s FICO score creating an incorrect picture of a person’s credit worthiness.
What’s in a name?
The applicant may have used more than one. Sometimes this is inadvertent such as using a name without a generation marker (Jr., Sr.). Sometimes it is intentional. Either way, it will tend to link the applicant to other files.
Typos
A clerical error was made entering key information such as address, often because of illegible handwriting. If you can’t clearly read the application, neither could the previous company. If the handwriting isn’t clear don’t be surprised by inaccurate results.
Fraud
The person previously provided somebody with an inaccurate Social Security Number. Sometimes this is done to create a new, clean credit profile. There are over twice as many profiles as there are adults in the United States, so this isn’t uncommon. It could be inadvertent, or it could also be fraud.
http://www.myfico.com/crediteducation/mistakesmade.aspx
Understanding debt collection and background screening best practices can save your business big money. Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven’t already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity. Contact us to sign up for a free account and get started protecting your business today.
ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.