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Tuesday, July 26, 2011

What Is A Financial Background Check?


Financial background checks are beginning to gain popularity with individuals and businesses alike. It is a resource that can be very valuable to many different people, for many different reasons. A personal financial background check can provide information about a person's financial history. This information can include such items as your credit score, loan repayment history, bankruptcy, or tax liens. It may also show information about any assets that you have, such as property or vehicles.

Why Is a Personal Financial Background Check Done?

A check into your financial background may be done for a variety of reasons. If you are applying for a loan, the bank will want to know how likely you are to repay the loan on time, so they will conduct a financial background check. Many landlords will also perform financial background checks on potential tenants for the same reason. Many insurance companies also check your financial background and may base your premium on their findings. An employer may conduct a financial background check on prospective employees; this can give them more information about a person.

How to Perform a Personal Financial Background Check

There are many resources available for performing a background check on an individual. You can do all the research yourself. However, you should know that this is time consuming, and you must be sure to follow all the laws that may be in place. There are also many companies that will do the background check for you, while abiding by all the laws.

Financial Background Check on a Business

Did you know that you can check the financial background of a business before utilizing their services or investing in their stock? Doing a business background check will provide you with more knowledge about a company. A business background check will include information about all aspects of the business, including profit and loss statements, credit rating, liens, assets, and business licenses. It may also give you information about the management team, products they offer, and the length of time that they have been in business.

Why Is a Business Financial Background Check Done?

There are many reasons you may want to check the financial background of a business. One of the biggest reasons to check the background of a business is to prove that it is a reputable and legitimate company that has been in business for a while. Verifying a company's background can save you from being taken in by a scam. You may want to perform business background checks on businesses such as home contractors, financial advisors, insurance companies, or any other business that you want to know more about.

How to Perform a Financial Background Check on a Business

There are many places available to learn more about a business. A great place to start when looking into a business's background is the Better Business Bureau. This will show any complaints that have been filed for the business you are searching. You can also request a copy of the annual report from the business, or you may run a credit report using any of the major credit bureaus. If you want extensive information on a company, you may want to hire a third party to conduct the background check for you.


Guest post from Bailey Harris. Bailey writes about free background checks for BackgroundCheck.org.

1 comment:

  1. This is a very popular way to find details about how a person handles his money, loans etc. And now that all banks have a common blacklist it is very easy to do a background check and see if a certain individual has problems with other banks and tries to hide this fact. So these financial background checks are the perfect way to stay away of bad taxpayers.

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