Whether you are purchasing a car, boat, house, or other major asset, or are just seeking funds to pay for debts that you have already incurred, the typical route to getting the necessary funds is to fill out a loan application with your bank or another lender. Surely, it comes as no surprise to anyone that before a decision is made on whether to approve the application, the creditor will run a background check on you to determine your work history, see if you have had any criminal convictions, and to check your credit. There is one major step that most borrowers fail to take, unfortunately, and that is getting a personal background check on themselves before applying for a loan. This article explains why.

The Value of Background Screening

Mistakes are made in every line of work, whether it be in recipes, product manuals, knitting patterns, essays on historical events, and deeds, to name just a few of the many areas where they are found. You should also be aware that at times the background check that is obtained for you will have mistakes. They can result from similarities in names, addresses, Social Security numbers, and a bevy of other matters. It may be that you are Mary Smith and that your background check includes some information for Mary Smithe, for instance. If your credit is stellar and Mary Smithe has a bankruptcy in her past, your chances of obtaining the loan you are seeking will surely decrease considerably. And, these mistakes also occur with regard to a person's employment history, another critical area of concern to lenders faced with a loan application.

An Opportunity to Obtain Corrections

If you obtain a personal background check on yourself before applying for a loan, you will have the opportunity to review it and to obtain corrections on crucial matters. In the example above, the bankruptcy listed in your background report will be removed. As will any other errors.

Two things should be noted with respect to obtaining corrections on background checks. First, typically there is some time involved in getting the error removed and the report set straight. Second, if you claim an error concerning something that a former creditor reported, often that will result in the report noting that you dispute the error. Though the matter at issue is not removed, the dispute is a valuable step in the right direction.

Conclusion

Aside from the above advantages, if you obtain your personal background check prior to applying for a loan, you will be better able to answer any questions that the lender may have.

A background check can consist of information from a wide variety of sources and usually includes public records maintained by local, state, and federal governments. Various levels of government keep track of such things as criminal records, driving history, vehicle registrations, workers' compensation history, military service records, property ownership, and court cases in which you may have been a party. If you have been incarcerated, whether in county jail, state prison, or a federal penitentiary, that information will probably be discovered as part of the background check process. Local government records also include the academic history of most Americans, since most of us attend public schools.

It would be a mistake, however, to assume that a personal background check is limited to information assembled by the government. Private companies and individuals can also be involved. Credit bureaus, for example, are private corporations that specialize in tracking how you meet your financial obligations. In the United States, three such companies maintain statistics about how much you owe and whether you pay your bills on time; these records also indicate bankruptcies and reveal whether you have been evicted. Unlike other kinds of records, however, your credit history typically only provides information about the past seven years. Information older than that, except for bankruptcies, which stay on your record for ten years, is discarded.

A thorough pre-employment background check for a security clearance may also include a close look into your personal life. Through such techniques as interviewing your neighbors and checking your personal and character references, employers hope to identify those individuals who are more likely to be hard-working and trustworthy. Background checks in the digital age may also include internet searches using your name or address, and sometimes encompass specific efforts to locate information about you on social networking sites such as Facebook and MySpace.

Since background checks have become so commonplace, it has become increasingly more practical to run a background check on yourself. Having a background check in hand can be useful in a number of different situations. When searching for a job, the applicant who can provide this information will have an advantage, appearing to be a forward-thinking, responsible individual. Purchased background checks can also be shown to loan officers when you are trying to secure a new mortgage or refinance your home. Finally, prospective renters will be more likely to be offered a lease when they have a background check in hand to show to a landlord.

Whether you are purchasing a car, boat, house, or other major asset, or are just seeking funds to pay for debts that you have already incurred, the typical route to getting the necessary funds is to fill out a loan application with your bank or another lender. Surely, it comes as no surprise to anyone that before a decision is made on whether to approve the application, the creditor will run a background check on you to determine your work history, see if you have had any criminal convictions, and to check your credit. There is one major step that most borrowers fail to take, unfortunately, and that is getting a personal background check on themselves before applying for a loan. This article explains why.

The Value of Background Screening

Mistakes are made in every line of work, whether it be in recipes, product manuals, knitting patterns, essays on historical events, and deeds, to name just a few of the many areas where they are found. You should also be aware that at times the background check that is obtained for you will have mistakes. They can result from similarities in names, addresses, Social Security numbers, and a bevy of other matters. It may be that you are Mary Smith and that your background check includes some information for Mary Smithe, for instance. If your credit is stellar and Mary Smithe has a bankruptcy in her past, your chances of obtaining the loan you are seeking will surely decrease considerably. And, these mistakes also occur with regard to a person's employment history, another critical area of concern to lenders faced with a loan application.

An Opportunity to Obtain Corrections

If you obtain a personal background check on yourself before applying for a loan, you will have the opportunity to review it and to obtain corrections on crucial matters. In the example above, the bankruptcy listed in your background report will be removed. As will any other errors.

Two things should be noted with respect to obtaining corrections on background checks. First, typically there is some time involved in getting the error removed and the report set straight. Second, if you claim an error concerning something that a former creditor reported, often that will result in the report noting that you dispute the error. Though the matter at issue is not removed, the dispute is a valuable step in the right direction.

Conclusion

Aside from the above advantages, if you obtain your personal background check prior to applying for a loan, you will be better able to answer any questions that the lender may have.

When you're looking for a new home or apartment to rent, you can do yourself a huge favor by getting a personal background check on yourself. If you take care of this process rather than have the person renting you the house do it, your rental application will be so much stronger.

All landlords would enjoy having a tenant screening done for them. It saves them time and money. And if you do it as the tenant, you'll be looked at as a more honest and mature individual. You'll be seen by the landlord as not having anything to hide.

Everything about your past will be right out in the open to the landlord. And if you pay the small expense of getting your own tenant background check, the landlord will be given an indication that you're very likely to pay your rent on time during the forthcoming lease term, since you already fronted the background check fee.

It's quite easy to get a background check on yourself. Many reputable companies are out there who've been performing background checks on a multitude of individuals for decades. Simply do some research and ask your friends, neighbors and work colleagues if they've ever used one.

Another important reason for doing it yourself is to be able to verify that all your personal background information is 100% accurate. If it's not, you'll be able to challenge it and have it removed before presenting it to your prospective landlord.

Find out how satisfied each of your references were with their respective background check companies. You can also find these companies by searching on the Internet. Make certain they're a valid consumer reporting agency certified to do complete renter background checks, including criminal background checks.

If you're considering renting, and you know you have a criminal background, you might be hesitant to supply your own background check to a landlord for fear that when he sees your record he'll instantly turn you down.

But this will not always be the case. Many landlords will consider tenants with minor misdemeanor criminal complaints compiled against them if they're in no way violent or dangerous individuals. These complaints could simply have been minor traffic violations such as speeding tickets.  Additionally, by sharing your background check information with your potential landlord, you get the opportunity to explain any questionable information reported on your background check.

Landlords are hungry to rent out their properties. They have pressing expenses on their homes. They have to pay the carrying costs of the mortgages, taxes, repairs, and maintenance. So they need a regular supply of highly responsible, financially competent tenants.

By going the extra mile to obtain your own personal background check and supply it to your prospective landlord, you'll be starting off as strong as you can in your landlord's eyes, while saving him the time consuming hassle of doing it all himself.

Although a landlord and a tenant have a legally binding relationship based on a contract which spells out the terms of their relationship in detail, many problems can still arise. The root of these problems is the violation of the contractual obligations by either party. For example, the landlord may fail to provide necessary repairs or the tenant may fail to pay the full rent on time. In addition, privacy issues can create conflict. While some conflicts can be resolved with a simple conversation, others may result in acrimonious legal actions.

By working on communicating his or her plans, a landlord can avoid tenant problems. Tenants who are concerned about health or safety will be upset if the landlord continues to make vague promises about maintenance. For instance, if the landlord has contacted a plumber for an emergency, but the plumber can’t get to the rental property quickly, the landlord should tell the tenant about the delay. The better the communication between the landlord and the tenant, the less conflict they will have in their relationship.

Background Checks

A basic background check should be conducted by landlords whether they are renting a house or an apartment.

Here are some steps the landlord should take before renting out property:

• Instead of renting out property based on a telephone conversation, the landlord should take the time to meet the tenant in person and get to know them. This will form the basis of a positive relationship.
• Inform the tenant about the need for a background check and ask for the necessary information to conduct it.
• Outsource a Background check. Although this will incur an expense for the tenant, it is worth the effort to avoid future problems.

Depending on the terms of the contract, the landlord should only collect all rentals and all fees after the background check has cleared. A personal interview and a background check should be done before accepting any payments, including a deposit to secure the lease. Asking for money before the tenant has been accepted can be a source of potential problems.