Credit scores reflect the Credit history of an individual for a period spanning 7 years and give an insight into his repayment capabilities. This analysis helps lenders define the amount that can be lent to the person and the interest charged on it. Credit reports are prepared on the basis of the information obtained from credit bureaus who compile the information received from various lenders. Most organizations hire professional Background Credit Check services to get an insight into the credit ratings of an individual.

A credit report focuses on the credit history and does not take into account the criminal record of an individual. A conviction is not reflected in the credit report. Though misdemeanour does not affect the credit score of an individual, it can negatively impact the employment prospects and the chances of renting property. This is because most organizations and landlords conduct criminal background checks in addition to credit checks.

When a person borrows a particular amount, it is reported by the lender to the bureau. The information received is converted to a credit score of three digits. The credit score is arrived at by taking into consideration the number of credit applications, types of credit used by the person, credit history, repayment behaviour and the outstanding credit of the person. The credit scores arrived at represent the credit worthiness and repayment abilities of the individual. The score may define a person’s capability of securing loans at interest rates which are competitive. A high credit score is favourable for any individual.

In order to gather information about a person’s criminal history, it is important to conduct criminal background checks because instances of misdemeanor are not reflected in the credit score. It is for this reason that most landlords prior to renting out property hire Landlord Credit Check Services. These credit check services provide information about the rent payment capabilities of the individual and can also reflect records of past credit history if requested by the landlord. Criminal records can negatively impact the employment and property renting prospects of an individual. It is hence advisable for employers and landlords to pay attention to both credit and criminal history checks.