The best way you can gather information on your customers or potential customers is with a credit application. the main reason you should get a signed credit application is to decide if you want to extend this customer credit or not. You would also use the applications information if the customer ever became past due.
You should be looking for stable income or employment, someone who does not have alot of debt, has good credit and no NSF checks, judgements or collection accounts.
Things to look for:
- Have they paid their bills on time?
- What is their outstanding debt?
- How long is their credit history?
- Have they applied for new credit recently and how often and how much?
- What is their income in relation to their "debt"?
- What types of "credit" or "charge" accounts do they currently have and how many?
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