How do Credit Pulling Softwares Work?


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There are several reasons that you may encounter the need to understand exactly how software that pulls someone’s credit info works. You may need the info to make a business choice if your company offers to finance or might need a deposit for your services. You could also be the person looking for financing or credit and you want to know what the other person might see when they use this software.

How do Credit Pulling Softwares Work

Why Would You Need to See Someone’s Credit Info

There are several reasons that people check credit information and these are just a few:

• To Decide If a Deposit Needs to Be Paid

Many companies that bill you for service after use will check credit to see if you are high risk. If you are they will ask you to pay a deposit before you can start service.

• To Approve a Loan or Credit Line

This is the most common reason people pull credit. This is so they can decide if your history shows that you will repay your loan. The better your credit often the lower the percentage of interest they will charge.

• To Offer a Job

Many companies will pull your credit when they run a background check. There are situations where you can lose a job offer because your credit score is too low and will lead employers to believe you are not responsible.

• To Decide Cost of Insurance

Many people do not know this but your credit score is pulled when you buy the insurance and the better your score the better price you will receive. Seeing that you value being responsible leads them to believe you will be more cautious about everything in your life.

Softwares That Can Pull Credit

When a company uses software to pull credit, it will either perform a soft or hard inquiry. You need to make sure you know which type of inquiry you are making. Soft inquiries normally do not affect someone’s score.

However, if the software performs a hard inquiry it can cause the credit score to drop. The only reason to do a hard inquiry is if you are going to be offering a credit line or loan. If you only need to know their score and basic payment info you can get that with a soft pull.

What Can You See on a Credit Pull?

When you pull a credit report it does not matter if the inquiry is soft or hard you will receive the same information. When you to a credit pull you will see the full report. This will include their credit score.

There will also be a detailed report where you can see the payment history on every line of credit and loan they have had in the past 7 years. This will let you see if they are reliable and normally make their payment on time.

You will also be able to see how much money they owe on all these accounts as well. This will allow you to see if they have enough income to pay for everything they owe. You will also be able to see when all their current accounts were open.

Protect Your Credit

You must protect your credit. This is the one number that you will be judged by constantly. You must always make sure to pay your bills on time and do not stretch yourself too thin. If you need software to perform credit checks there are excellent software choices on the market that can do both soft and hard pulls. Take some time and do your research and you will be ready to go in no time.


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