Other Ways the Credit Report Can Be Used to Evaluate People
The credit report doesn't only show whether someone is a good or a bad payer; it is also an official report demonstrating many other qualities of that person. Banks and other financial institutions often use it on administrators of small and medium enterprises that do not have an established commercial credit report when they apply for a loan. In that case, if the administrator has a good personal credit report, the company is generally well managed, and the commercial account should be paid the same way the personal accounts are paid.
The consumer credit report also reveals a lot about the personal life of an individual. If a person is a reliable payer, there are strong chances that this behavior will reflect on a professional level. After the criminal file, it is a first choice tool used by numerous employers to judge the reliability of a candidate for a position, if the candidate agrees to have their consumer report consulted.
The interview is a non official event where people often inflate their resume. There is no law stopping a candidate from exaggerating their good shots and hide their bad moves, or even lie on certain accomplishments. The credit report is, in that case, an excellent official and objective report that will complement the CV. It it a demonstration of the reliability and the management ability of the candidate.
A person with a weak credit report could be demonstrating some organizational difficulties, lack of responsibilities and personal instability. The report doesn't lie since it is built on facts and not affirmations. Few employers would be ready to hire a candidate for an important position who is not able to manage their own accounts and cumulates collections; what someone has done in the past may repeat itself in a professional context.
For these reasons, the credit file is more than just a report on the credit situation. It is also an official report that put forward the organizational skill and the reliability of a person. It is an objective source of information that equals academic qualifications, professional references and the criminal file. With a good credit report, an individual demonstrate their quality.