You might want to find out the credit history and potential of any client or tenant or hire you’ve been currently approached by. That would require a full-scale background credit checking of that individual, to measure the financial stability. This is necessary given the strong protection you need to provide that are embedded in the federal regulations.
You would need some credible information such to request a credit report, such as full name and social security number, as the candidate’s rights are protected by law.
The three credit reporting agencies: Equifax, TransUnion, and Experian would provide the credit information. This process is strict and requires a service fee ranging from $8-$20.
Now that you have the data, it requires prudent interpretation. Before that, you need to decide your own threshold of the FICO score or client background. Analyze the report with a pinch of salt and don’t jump into conclusions. There can be many reasons for a bad debt.
You can go for a test-run of your own credit information to check any inaccurate information on your financial identity. This helps build sensitivity towards the client who can be a victim of identity theft, and hence good communication can sort any ambiguities.
Informal inquiry of the credit information can also be opted for, like asking previous landlords or employers.