Credit Checking – Who Else Is Privy To Our Credit Information?

Credit checking carried out by lenders comes as no surprise to us as we recognise it as part of the loan qualification process. However did you know there are a number of other individuals and organisations who are also privy to our credit information? This article discusses exactly who is allowed access to our credit report and why.

In addition to lenders credit checking your records, landlords are able to check your credit information under the Fair Credit Reporting Act. They are likely to do this to verify information you have given them and to check your payment history.

Obviously they want someone with a history of on time payment of bills rather than someone who has a history of late payments. They also figure someone with an exemplary credit history is more likely to look after the property they’ll be renting from them.

Employers can also be found doing some credit checking on you, however they do have to ask for your consent beforehand.

They use this information to check whether you’re honest – any evidence of fraud or theft will obviously have a negative influence on your employment prospects.

They also draw on this information to gauge if you’ve been financially responsible – connecting this with your ability to be responsible in your day-to-day duties.

A number of insurance companies will base approval for insurance coverage and the amount they will charge you for a policy based on your credit history.

Insurance companies are known for credit checking in order to work out how much of an insurance risk they think you may be to them.

They consider your credit information to be a useful predictor of how likely it is that you could be in an auto accident or make a claim on your home insurance.

Even rental car companies can run an inquiry and usually do especially if you pay by debit card and not credit card.

Are you aware that credit information can be sold to lenders and insurance groups by the 3 main credit reporting agencies?

Lenders and insurance groups then use this information to mail pre-approved credit offers or offers of insurance. And this practice is allowable by law.

At least now you’re aware of who is credit checking you and how they’re using this data to make decisions about your employment, rental applications and insurance coverage.