The Federal Credit Report Act allows certain parties to check your credit report, and restricts how the information can be used. The following is a list of businesses and agencies that are allowed to request for your credit report:
Employers. If you're currently employed and being considered for promotion or reassignment, your employer may request for a copy of your annual credit report. If you're applying for a job, the prospective employer may ask for your report to check your integrity in financial matters. Your employer (current and prospective) will have to get your written permission before they can get your report.
Potential lenders. Credit card companies, banks, and other lenders will ask to see your credit report to check if your credit score is high enough to justify their approval of your credit application.
Mortgage lenders and landlords. If you apply for a home mortgage loan, the lender will ask for a copy of your annual credit report to check your payment habits, and to determine what interest rate and terms to give you if they decide to approve your application.
Insurance companies. When you apply for health insurance, the insurance company will almost always request your credit report to review your medical history, and/or check your health insurance claims.
Government agencies. Grant applications are likely to call for a review of your credit report. The government agency will want to see if you really need the funding assistance. Another purpose is when you are involved in a child support case. The relevant government agency will want to make sure that you can make the child support payments, hence the reason for the credit report review.
Collection agencies. If you have an overdue debt that has been turned over to a collection agency, the agency will ask to look at your credit report to see what assets you have, and/or to try to locate you.
Student loan lenders. If you are a student applying for a private student loan or parents applying for a PLUS loan to help fund your child's undergraduate education, the lender will look at your credit report to see if you have any other outstanding loans, and to take a look at how diligent you are in paying off debts.
Cellphone and utility companies. If you apply for or request for an upgrade of a mobile phone plan or utility services such as electricity, cable tv and the like, the company may ask to check your credit report to see if you have a favorable payment picture and decide whether to grant your application.
You should periodically check your report and review the information to make sure that no unauthorized parties have been given access to your annual credit report. You can get a copy of
your free annual credit report from MyFico, TransUnion or Equifax, either simultaneously or each report spaced a few months apart from each other. Doing the latter will allow you to monitor the rise and fall of your credit score and see what new information goes into your report over a period of time. Check out more of our
credit repair tips at
HowToEstablishGoodCredit.com.
