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)

Question

Responses

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.

Federal regulations require them to make that request whenever someone signs up.
Federal regulations require them to make that request whenever someone signs up.

They needed to decide whether to require Cole to provide a deposit.
They needed to decide whether to require Cole to provide a deposit.

The company does background checks on all potential employees.
The company does background checks on all potential employees.

Answer 1

The most relevant response is:

They needed to decide whether to require Cole to provide a deposit.

Electric companies often check credit reports to assess the creditworthiness of new customers. This information helps them determine whether they should require a security deposit to ensure payment for services.