Your credit report contains a wealth of information about your payment habits that many businesses use to decide if they will do business with you and how much you will be charged.
Not only can every business check your credit report, especially not without your permission
The Fair Credit Reporting Act only allows businesses that have a “permitted purpose” to check their credit report. This would include something like pulling out your credit report to see if you qualify for a credit card or credit.
Here are some companies you can expect to check your credit report.
01 Your current creditors and lenders
If you already have a credit card or credit, your lender can check your credit report to decide if the terms of your account will remain the same or change them. If there is negative information in your credit report, your creditor can raise the interest rate, lower the credit limit, or close your account altogether.
Companies you already have credit for do not need your explicit permission to check your credit report. The terms of your credit card or credit probably include a language that lets you know that the trustee will check your credit history periodically.
02 Potential Creditors and Lenders
When applying for a new credit card or loan, the bank will first check your report to decide whether to approve your application, decide what credit limit or loan amount to give you, and allocate interest.
03 Potential Owners
Landowners check their credit report as part of the rental application process to determine if they should rent to you. If you have recent delinquencies, hijackings or evictions on your credit report, your rental application could be denied.
04 Your insurance
Insurance companies check your credit report to decide if they should insure you and at what price they should insure. If you have negative information about your credit report, such as late payments and collection accounts, you could have a higher consumer insurance rate without negative information.
05 Potential or current employer
Potential employers use your credit report to make hiring decisions. Your current employer may also review your credit report before raising or promoting you. Bankruptcy, irregularities in accounts and high levels of debt can prevent you from getting a job or getting an increase or promotion.
Keep in mind that potential employers are reviewing your credit report, not your credit score . They must also have your written permission before checking your credit report.
06 Debt Collectors
Debt collectors review your credit report to get information that will help them collect debt from you. This includes your current address and employer information. They can also see other accounts in your credit report to evaluate whether or not you can pay for the collection.
Before setting up utilities, the company will check its credit report. They can charge a security deposit if there is information about your credit report that makes you look like a risky user.
08 State agencies
In certain circumstances, government agencies may check your credit report. For example, to determine whether you qualify for public assistance, to calculate child support payments, or to process your application for a government license.