How to Legally Check a Contractor’s Credit in Washington

Before you hand over thousands of dollars for a remodel or repair job, it’s smart to know whether your contractor is financially stable. Here’s how to do it legally, safely, and effectively in Washington State:

Step 1 — Identify the business type

Start by checking the contractor’s registration at lni.wa.gov/verify.If they’re listed as:

• LLC, Inc., or Corporation: You can order a business credit report through Experian Business, Equifax Business, or Dun & Bradstreet.
• Sole Proprietor: Their business is legally tied to their personal credit, so you’ll need their written consent first (use the CCW “Credit Report Authorization” form).

Step 2 — Use a legitimate source

If the contractor is an LLC, Inc., or Corporation

Use one of these business-credit reporting services to purchase a single report (no subscription required):

• Experian Business Credit Reports — about $39–$49

1. Click “Search for a Company.”
2. Enter the contractor’s business name and city/state.
3. Experian shows a free summary (name, address, whether a file exists).
4. Buy the detailed report for full payment history, liens, judgments, and bankruptcies.

1. Create a free account and order a Business Credit Risk Score Report.

• Dun & Bradstreet Business Information Reports — about $611. Search by business name and location under “Search D-U-N-S Number.”

Tip: If none of these services find the business, that’s a red flag. It may mean the contractor has no established credit or isn’t properly registered.

Legal note: Business-credit reports contain only business data — you don’t need written consent for an LLC, Inc., or Corporation.

If the contractor is a sole proprietor (unincorporated)

Their business and personal credit are the same, so you must get their written consent (use the form below). Then you have two legal options:

1. Ask the contractor to pull their own personal credit report from AnnualCreditReport.com or any major bureau and share a copy with you, or;2. Hire a licensed screening company that conducts credit checks for business-evaluation purposes under the Fair Credit Reporting Act (FCRA). These companies work like tenant-screening services: they verify consent and send you a summary.

Step 3 — Review for red flags

Look for:

• Unpaid debts or liens
• Frequent late payments
• Court judgments or bankruptcies
• Recently opened credit lines (a sign of cash-flow issues)

A blemish or two can happen to anyone. A pattern of instability should raise concern.

Step 4 — Document and store securely

Keep the signed consent form and/or any reports in a safe place. Do not publicly post or share the contractor’s financial details. For a sole proprietor, that’s private information protected by law. For a business entity, there are other legal risks if the data is outdated or misinterpreted and you share it.

Step 5 — Use what you learn

If the credit report looks strong, great. It’s one more sign your contractor runs a stable operation. If not, you can:

• Require smaller deposits and more frequent progress payments,
• Ask for proof of paid subcontractors and suppliers, or
• Move on and find a more financially sound contractor.

Bottom line: A credit check is about protecting your investment and making sure your project doesn’t collapse halfway through because your contractor ran out of money.