Cole just moved to a new neighborhood. He called the electric company to switch the utilities for his new home from the landlord to himself. Why would the electric company request a copy of Cole’s credit report?(1 point) Responses They needed to decide whether to require Cole to provide a deposit. They needed to decide whether to require Cole to provide a deposit. Cole had applied for one of the company’s credit cards and they wanted to find out if he was a good borrower. Cole had applied for one of the company’s credit cards and they wanted to find out if he was a good borrower. The company does background checks on all potential employees. The company does background checks on all potential employees. Federal regulations require them to make that request whenever someone signs up.
The electric company would request a copy of Cole's credit report to decide whether to require him to provide a deposit.
The electric company might request a copy of Cole's credit report because they needed to decide whether to require Cole to provide a deposit.
The electric company may request a copy of Cole's credit report for a few reasons. Here's an explanation for each option:
1. They needed to decide whether to require Cole to provide a deposit: When someone moves to a new place, especially if they have no previous utility payment history, the company may require a deposit as a form of security. By reviewing Cole's credit report, they can assess his financial responsibility and determine whether a deposit is necessary.
2. Cole had applied for one of the company's credit cards and they wanted to find out if he was a good borrower: If Cole has applied for a credit card from the electric company, they may review his credit report to evaluate his creditworthiness. This helps them assess the risk of extending credit to him and whether he is likely to make timely payments.
3. The company does background checks on all potential employees: In some cases, the electric company may request a credit report as part of their background check process for potential employees. This is not directly related to Cole switching utilities but could be a possible reason in certain situations.
4. Federal regulations require them to make that request whenever someone signs up: It's not typically a federal regulation for electric companies to request a copy of a customer's credit report. While some utility companies may choose to review credit information, it's not a universal requirement imposed by federal regulations. Thus, this option is less likely to be the reason for the request.
In summary, the most likely reason the electric company would request a copy of Cole's credit report is to determine whether to require a deposit or assess his creditworthiness if he has applied for one of their credit cards.