CREDIT REFERENCES FOR UTILITIES
Utility companies may use credit references, including traditional credit scores, to decide whether you need to pay a security deposit — and if so, the amount. Some industries rely on specialized scoring models, such as Experian TEC Connect, to assess creditworthiness rather than a traditional credit score. A utility company may accept a “letter of credit” to waive a security deposit if the customer has had utilities before. A letter of credit can be requested by a former customer of a utility. It’s typically printed on letterhead stationery and includes account number, payment history, dates and balances.
If your payment record is strong, submitting a letter of credit could help waive or reduce a required deposit.
CREDIT REFERENCES FOR BORROWERS
When you apply for a credit card or loan, the credit references usually come from one of the three major credit bureaus: Equifax, Experian and TransUnion. Lenders might look at your credit report, which shows your account history and payment behavior, or your credit score, which is a number calculated from the data in your credit reports. While your credit score and credit report are related, they are two separate pieces of financial information. Creditors may use one or both to evaluate your application, along with other factors such as your income, debt-to-income ratio and assets.
CREDIT REFERENCES FOR EMPLOYMENT
In some states, employers are allowed to check a modified version of the job applicant’s credit report as part of the hiring process, and those might reasonably be called a credit reference. Employers must have your written permission to access your credit reports, and the version they receive doesn’t not include without account numbers, birth year or marital status.
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