Credit Report for Net Worth Verification Made Easy

It is fair to say that requesting a credit report is often a hassle. Like so many other industries, as required by law, reviewers also need to review a credit report when an investor is using the net worth method to be verified as an accredited investor. The most important thing to remember is that providing a credit score is not enough as reviewers will need to review the liabilities. Why is a credit report required in the first place? What steps must be taken to secure a full credit report for verification purposes? And how have we made the process easier than ever before? All of these questions will be answered below.

Why is a credit report required for net worth verification?

Investors going through the net worth to become a verified accredited investor must provide a recent credit report (no older than 90 days). This is according to Rule 506(c) from Regulation D on the SEC website as written below:

"...(B) Regarding whether the purchaser is an accredited investor based on net worth, reviewing one or more of the following types of documentation dated within the prior three months and obtaining a written representation from the purchaser that all liabilities necessary to decide of net worth have been disclosed..."

Because credit reports are used as third-party certifications of investors' liabilities, if this is not provided, then, unfortunately, under US federal laws, reviewing parties (licensed attorney, a CPA, an SEC-registered investment adviser, or a registered broker-dealer) may not be able to verify an investor as an accredited investor through this verification method, unless the investor certifies that their country does not provide credit reports.

What steps must be taken to secure a full credit report for verification purposes?

There are many different ways to access a full credit report, however, these are the most common and generally easiest ways to obtain one:

1. Order one free credit report from any of the credit reporting bureaus from https://www.annualcreditreport.com. Normally only one credit report was free per year, however, during the Pandemic all three credit bureaus have permitted one free report per week.

2. Order a credit report directly from one of the three credit report bureaus.

3. Order a credit report from a credit app such as Credit Karma or MyFICO.

How have we made the process easier than ever before?

For a faster, simpler process, authorize VerifyInvestor.com to generate a credit report from TransUnion for a low fee. Simply fill out the form with some basic identifying information and a soft-pull (one that does not affect your credit score) will take place for the accredited investor net worth verification process.

We are always happy to make the verification process easier, so we are excited to add the credit report request directly to our verification process. During a lifetime, credit report requests will be a regular part of financial transactions so it is a good idea to understand the best ways to secure one. Find out more about the finance industry by reading the VerifyInvestor.com blog.