A Practical Discussion of Credit Bureaus and Their Scores

Usually I spend my time talking, writing and teaching about sales related issues. Typically they center around topics such as motivation, sales techniques, goal setting, etc. Very often though, when I get to the question and answer part of my presentations, I am asked questions about credit. This is a topic that is near and dear to every sales person but because it is usually out of his or her control, it is not discussed as a part of most sales training courses. Even when it is, the training usually consists of selling the decline while trying to get the next deal from the vendor or broker. Because understanding credit issues is essential to success in this business I decided to do some research and write an article about an area of credit that is used frequently, especially in small ticket leasing, but is often misunderstood – the principal’s personal credit bureau and associated scores.

Why is the principal’s personal credit report so widely used in our business? Actually there are many reasons. They are inexpensive, usually two to four dollars per report depending on your volume. The information is rich – many consumer credit issuers report their results to the credit bureaus. They are available to any credit issuers, so a new company can have access to the same information as established lessors. The primary reason, though, is that they are predictive. For a variety of reasons the consumer credit report of the owner/partners/officer(s) of a business is one of the most reliable sources used to determine the likelihood that the lessor will have a positive experience with the lessee.

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