What Are the Most Important Things in a Credit Report? Skip to main content

What Are the Most Important Things in a Credit Report?

If you’re a lender who is considering using credit reporting software to grow your business, you might be wondering about the most important aspects of a credit report.

Soft Pull Solutions is an online interface that enables lenders to request their customers' credit information in the form of a soft pull on their credit report.

There is no doubt that your financial decisions as a mortgage broker or lender are extremely important. At Soft Pull Solutions, we recognize that you want accurate and fast credit information to assist you in making lending decisions that will enable you to complete a bigger number of loans more effectively on a regular basis.

In this article, we will discuss the most important things in a credit report, soft pulls, the benefits of using soft pull reports for your business, and how they help your business avoid fraud and allow your lending business to grow faster.

What are the most important things in a credit report?

Credit reports contain important information about your client’s previous and current credit activities, such as loan repayment history and credit account status. You can identify your clients by providing basic information such as their name, mailing address, and place of employment. The most important things in a credit report are detailed information about a client’s debts, account history, employment history as well as information from public records and other sources.

Account histories contain vital information about the number of loans a client has, the dates when these loans began and the amount of credit they have available. They also include payment history, including whether or not they have made any late payments. Bankruptcies are also listed separately on a credit report in a separate section.

Inquiries can be classified as either "hard" or "soft." A soft inquiry can be generated for a potential client to make sure as a lender you have a good understanding of their financial health, which can assist you in deciding whether or not to do business with them.

What is a soft pull?

Soft pulls are widely used by businesses when determining if someone qualifies to get pre-approved for a loan or other financial transaction.

A soft pull allows lenders to run a non-invasive credit check on someone in order to establish whether or not they are prequalified for a loan. This can allow a lending business to have a better understanding of a potential client's creditworthiness.

The importance of understanding how soft pulls will help your consumers cannot be overstated; employing soft pulls as a lender can be advantageous for your business for a variety of reasons, which we will outline below.

What is the benefit of using a soft pull report?

A soft pull, also known as a soft credit check, is a method of pre-qualifying candidates without negatively damaging customers' credit scores. Using a soft credit check, companies may determine whether or not their consumers qualify for particular sorts of loans or significant purchases, among other things.

As a lender, by pre-qualifying applications with soft pulls, you can save time and money while also providing a better experience for the client as they go through the loan process.

When you make a soft pull with Soft Pull Solutions, we will collect information from the three major bureaus. Experian, TransUnion, and Equifax. These are all accessible through one smooth pull. Our Multi-Bureau Summary provides you with a quick snapshot of your applicants' credit scores from each of the three major credit bureaus in one convenient location.

How credit reports can help you avoid fraud

In this day and age of increasing fraud, alternative credit data allows you to make financing selections with the greatest amount of information and reliability.

When it comes to making important financing decisions, financial security is one of the most important considerations. The likelihood of lenders being victimized by fraud or fabricated information increases significantly when inaccurate information is provided by their clients.

A customer who is intent on committing identity fraud or other criminal activity can cause hours of headaches and thousands of dollars in losses for a business that is making loaning decisions. This can also cause damage to the business’s credibility and reputation as a respectable lending institution.

How soft pull solutions can help your business grow faster

Lenders are increasingly reliant on credit reporting tools to carry out their jobs in the safest and most proficient way possible, which is why we have expanded our services to include essential credit reporting solutions.

Our team understands that giving out loans may be a difficult and time-consuming procedure, particularly if you don't have the proper resources at your disposal. At Soft Pull Solutions, we have made it our duty and mission to reduce your risk as a lender. Soft Pull Solutions understands how critical it is for lenders and mortgage brokers to receive a comprehensive report on a customer's credit history and financial stability in order to provide low-risk loans.

We have developed a solution that provides lenders and mortgage brokers with a comprehensive report on a customer's credit history and financial stability. Not only will utilizing our software save you money and allow you to spend less time dealing with collection agencies, but it will also allow you to make financial decisions faster and with greater confidence.

Let’s have a look at some of the advantages that credit reporting software may bring your lending firm. Our full-file reporting service includes the following features:

Our online portal can provide an instant full file credit report. You will be able to see the customer's credit information and FICO score to help you qualify customers on the spot. The benefits of using our service include:

  • There is no date of birth required
  • Gives you access to all three bureaus
  • Provides a full and comprehensive credit report
  • The report does not impact the consumer's credit
  • Allows for fewer compliance obligations - saving you money and headaches

Using credit reporting software is guaranteed to give you the peace of mind you require while making critical lending judgements, while also saving your business money in the long term.

Credit-reporting software can assist small firms in expanding their operations. Our software allows lenders to acquire comprehensive reports on their clients and makes the whole lending process faster and easier.

The bottom line is that everything comes down to risk management, and when you can minimize your risk by offering loans to just the most eligible consumers, your business has that much greater potential for growth and success.

The top lenders now rely on private credit reporting firms that are well-acquainted with credit reporting software to help them run their business, and you should consider doing so as well.

Call us at Soft Pull Solutions today about using credit reporting software for your business or if you’re looking for a private firm to assist you in pre-qualifying consumers for finance. We are here to help your lending business grow.

About the author

Soft Pull Solutions

Back to top