Credit Reports from Bureaus
This section describes how you can extract the credit history of a potential borrower for evaluating the application.
A credit bureau is an agency that
researches and collects individual credit information (an individual’s borrowing and bill-paying habits) and
sells it for a fee to creditors so they can make a decision on granting loans.
It is also referred to as the consumer reporting agency (CRA) or credit reporting agency.
Credit Reports using the Meridian Link
A credit report or Credit Pull provides a borrower's history as reported by earlier lenders to various credit reporting agencies such as Equifax. This allows you to study the borrower's profile at different levels. The borrower's personal information details like address and social security help you check for possible identity theft. The financial information like any bankruptcy, tax liens and overall credit score of the borrower can be used for credit assessment and decision making. This is done by performing a Credit Pull.
Q2 Origination uses Meridian Link to pull credit reports of applicants. Meridian Link is integrated with all the three US credit bureaus - Transunion, Equifax, and Experian. Financial institutions are required to report the credit history of their borrowers to these bureaus every month. They are required to follow a specific format called Metro2 file format while reporting credit history. This process is called Credit Reporting. You can customize Q2 Origination to integrate with additional or other credit reporting agencies. During loan origination, a lending organization typically pulls the credit history or credit score of the potential borrower from one or more of these bureaus.
Prerequisites
Before you proceed to perform a credit pull, ensure that the following prerequisites are met:
Credit reporting agency is configured
A Party is defined for the application
See the Credit Reporting Agency section in the Q2 Origination Administration Guide for information on configuring Meridian Link.
Steps
To perform a credit pull:
Go to the application you have created.
Select Credit in the list of tabs.
The page displays the parties associated with the application.
Select the checkbox for the party whose credit report you need, and select Pull Credit.
For example, you may want to pull credit information for the borrower, co-borrower, and guarantor.
On successful credit pull, the message "Credit pull successful" is displayed.Select the report name in the Credit Report column to view the credit report for the selected party.