What Industries Do Not Need an On-site Inspection To Get Set Up With Credit Report Services?

If you run a small business, lend to customers, or help applicants get prequalified through third-party financing partners, you’ve probably heard about the on-site inspection requirement. For many businesses, passing an on-site inspection is a mandatory step before gaining access to credit reports from TransUnion, Equifax, or Experian.

However—not every industry needs one.

A small group of businesses is exempt from on-site inspections entirely, which can make getting set up with credit-reporting services much faster and more straightforward.

Here’s what you need to know.

Why Most Businesses Need an On-site Inspection

Before we get into the exemptions, it helps to understand why inspections exist in the first place.

Under the Fair Credit Reporting Act (FCRA), credit bureaus must verify that any business accessing consumer credit data can securely store, handle, and dispose of that information. That’s why third-party companies like TrendSource or Complytraq visit your office to check for things like:

• A secure, dedicated office space
• Password-protected Wi-Fi
• A locking filing cabinet
• A paper shredder
• Evidence of your company’s business activities
• No shared office space with unrelated businesses

These requirements help prevent identity theft, data leaks, and misuse of consumer information.

But for some industries, regulators have already done this vetting—making the on-site inspection unnecessary.

Industries That Do Not Need an On-site Inspection

Only a few types of institutions are exempt from the standard on-site inspection process. These include:

1. Banks

Banks already operate under layers of federal oversight. 

Agencies such as:

• The Federal Deposit Insurance Corporation (FDIC)
• The Office of the Comptroller of the Currency (OCC), and
• The Federal Reserve

impose strict rules around data security, consumer information handling, and financial operations.

Because of this, credit bureaus do not require a separate on-site inspection for banks.

2. Credit Unions

Credit unions fall under similar regulatory scrutiny. The National Credit Union Administration (NCUA) oversees credit unions to ensure they meet federal security standards. Since they’re already held to rigorous compliance requirements, they too bypass the on-site inspection.

3. Franchise (New-Car) Dealerships

This one surprises many people.

Licensed franchise auto dealerships—especially new-car dealers—are also exempt.

These businesses are heavily scrutinized by both state licensing bodies and auto manufacturers. Because they must meet strict operational and compliance standards to maintain their franchise status, the bureaus categorize them as lower-risk.

Note: This exemption applies primarily to franchise dealerships, not independent used car lots, buy-here-pay-here dealers, or small resellers. Those typically still require an inspection.

4. Certain Government Agencies

Some government entities are exempt as well. Soft Pull Solutions does not generally work with government agencies, but they are part of the official exemption list.

Who Does Need an On-site Inspection?

For the vast majority of businesses, an on-site inspection is still required. This includes:

• Loan brokers
• Independent lenders
• Construction and home improvement companies
• Solar installers
• Auto repair shops
• Medical and dental offices offering financing
• Small businesses helping customers prequalify through third-party lenders

In other words, even if your business helps applicants secure financing, you may still need an inspection unless you fall into one of the exempt categories.

The good news? Inspections are quick—typically 15 minutes—and straightforward as long as your office meets a few basic requirements.

Why This Matters for Businesses Choosing a Soft Pull Partner

If you're a bank, credit union, or franchise auto dealership, onboarding with Soft Pull Solutions is fast, seamless, and free of inspection-related delays.

But even if your business does require an on-site inspection, we make the process simple. Most customers pass on the first try, and we provide guidance to help you prepare your workspace and your documentation.

And for the 90% of small-business clients we serve—brokers, contractors, and service providers—this requirement is normal, manageable, and often completed within a day or two.

Final Thoughts

Only a handful of industries are exempt from on-site inspections: banks, credit unions, and franchise auto dealerships. These businesses benefit from strict regulatory oversight, so they don’t need an additional compliance check before accessing credit data.

For everyone else, an on-site inspection is a standard part of the setup process—but it doesn’t have to be intimidating. Soft Pull Solutions is here to help you get approved quickly, securely, and with minimal hassle.

If you have questions about whether your business needs an on-site inspection or how to prepare for one, our team is here to help. www.softpullsolutions.com/onboarding