[arezalmighty]

May be a stupid question but if a broker is handling a merchant's deal and are concerned about the credit checks being run, why doesnt the ISO just run the credit and send it out with the app to their lenders? That way it is only run once, or at least you will cut down on the amount of times it gets run significantly.

-Though, there is no excuse why the same lender would run credit more than once on a merchant anyway????

[bizfundingfinder]

May be a stupid question but if a broker is handling a merchant's deal and are concerned about the credit checks being run, why doesnt the ISO just run the credit and send it out with the app to their lenders? That way it is only run once, or at least you will cut down on the amount of times it gets run significantly.

-Though, there is no excuse why the same lender would run credit more than once on a merchant anyway????

This post hits it right on the head. You want to weed out the chop-shops and unprofessional brokers, the way to do it is to REQUIRE them to submit a tri-merged credit report, pulled BY THE ISO SUBMITTING THE FILE, within the past 30 days. This is how it's done in the mortgage industry. This is how it should be done here.

We were, as a standard practic,e pulling credit up front and including the reports with our submissions only to find out that the funders were just pulling credit again anyway, and telling us that they wouldn't accept our report and had to pull their own. There's no reason for this. If you are doing business with me as an ISO, then there is a presumed level of trust, which means that you should take the credit reports I send you at face value. If you're going to doubt the integrity of my credit reports, than you shouldn't be doing business with me.

That said, if I send you a full submission pursuant to your guidelines and include a tri-merged report pulled within 30 days, then you literally have everything you need to underwrite the file for an approval. Pulling your own credit report again up front is superfluous and akin to nothing more than pissing on the file to mark it. Now, if the merchant accepts your offer and requests a contract, then by all means go ahead and pull credit before you fund them. That makes sense.

Bottom line IMO - funders should require tri-merged reports with all submissions. It will save them thousands of dollars in preliminary UW costs. It will weed out fly-by-nights and criminals from the referral pool. It will also probably reduce auto-declines as ISOs have access to current credit scores and other current credit history up front. And if an acceptable report is submitted, then the funder shouldn't pull credit unless and until a contract is requested.

[JSL23]

I have done that and/or had the Merchant send their docs with a credit report attached...they still insist on running credit. We always ask for credit score and inquire about any liens/credit issues as well. The Lenders should run credit once an offer has been accepted to CONFIRM the information they receive from the Broker/Merchant....I'd say the issue is 60% on the Lenders, 30% on the ISOS and 10% on the Merchants themselves(they sometimes lie about their credit or leave out information that can help).