The Emerging Trend of “Pull-and-Share” Credit Reports
Lately, more credit-issuing companies have been taking advantage of “pull-and-share” programs for getting credit reports on their customers. The government has been doing it for years, but now companies are joining in. They are choosing this option because it reduces their costs of buying credit reports and saves them time reviewing the credit of unqualified or non-serious candidates.
Here’s how pull-and-share programs work: The credit grantor provides their credit applicants a link to go pull, and pay for, their own credit reports through a secured platform. Once ordered, the report is automatically and securely shared with the credit-issuing company. The applicant also receives a copy.
Some of the benefits to the creditor are obvious, others may not be. Of course, the creditor is not paying credit report fees for each credit application, which adds up quickly. Additionally, the amount of time it takes a credit analyst to pull the report is saved. Less obvious is the reduced volume of credit applications from unqualified candidates. If a credit applicant is going to incur the costs of pulling its own credit report, there must be some degree of confidence that the report will reflect favorably. If the credit applicant isn’t confident in its own credit, the likelihood of self-exclusion is high, resulting in no credit application for the creditor to review.
Even though they are incurring the one-time cost of pulling a credit report, customers benefit from pull-and-share programs too. They are gaining access to a credit report that they would unlikely buy otherwise. The insights gained by reviewing its own credit report can help the applicant company identify and correct errors or weaknesses in its credit profile. Strengthening one’s own credit profile helps all companies to position themselves for more credit and better terms.
Pull-and-share programs for business credit reports deliver a win-win solution for both credit issuing companies and borrowing companies. BCR has recently added its own pull-and-share program, called the BCR ShareBack System. It’s a special, secure website where credit issuing companies can direct their credit applicants to safely and easily pull and share their own credit report. Ask your BCR representative about the BCR ShareBack System.