For years employers have depended on bank references to determine their customers’ creditworthiness. But getting this info from lenders is becoming increasingly difficult.
That’s mainly due to the new privacy laws. Even though lenders aren’t supposed to use these laws as a reason to avoid providing info about their customers, many are trying to.
Luckily, there are some things you can do to circumvent the excuses and get what you need.
Here’s one of the easiest moves you can make: The next time you fill out a trade reference request form, ask this question: “What’s the largest single payment amount, by check, made by the applicant in the past three months?”
Why this question? According to credit expert David Balovich, the answer to that question should allow you to get a general idea of the balances maintained in an applicant’s bank account.
And if you want to get a feel for whether a prospective customer is having any problems, add this: “Have you had any returned checks from this customer?”