Are you aware of everyone who can pull your credit report? Many people do not realize that their credit score factors into more than just getting a credit card or a home loan. Any time you apply for credit, the potential lender can get your credit report to determine how risky it is to lend you money. There are also other entities who can access the information in your credit report. Here is a look at other people and companies that can pull your credit and how they use it:
Your Current Creditors
If you have a credit card, an auto loan, home loan or any other type of credit account, your creditors are allowed to monitor your credit report. They pull your report to keep tabs on how you are currently managing your credit accounts.
More than likely your insurance company uses your credit score to help determine your insurance rates. Those with high credit scores pay lower rates where those who have less than stellar credit can pay considerably higher insurance premiums. Insurance companies believe people with lower credit scores carry higher risk.
If you rent, your landlord can check your credit history before you are allowed to sign a lease. If your score is low they can refuse to rent to you or require a larger security deposit. Once you are renting from your landlord, they’re not able to continue pulling your credit score, however.
Potential New Employers
Many employers also check credit scores before offering positions to potential candidates. In order for an employer to check your credit you must give them permission, but if you plan to be hired you better be ready to sign. Employers use your credit report to determine responsibility. If an employer does deny you a job due to your credit report they are legally required to tell you. While an employer is not supposed to use a bankruptcy against you, there is usually more in your report that they can use to deny you a job. Once hired, an employer will not be able to pull your credit report just to check on your status.
If you have a bill that goes to a collection agency and they are trying to collect money from you to pay such bill, they can pull your credit report. They may use your credit report to help locate you since your current address is listed on your report. Additionally, they can use your credit report to help determine if you can pay your bill.
Cell Phone Providers
If you are in the market for a new cell phone or a new cell phone plan you can expect that the company you choose is going to pull your credit before they offer you a contract. They want to know whether or not you can be relied upon to pay your bill every month. If you have poor credit you may be forced to do a pay as you go plan instead of setting up a monthly contract plan.
Government And Law Enforcement Agencies
Both government officials and law enforcement agencies are able to gain access to your credit report if they feel it’s necessary. This includes the IRS.
Utility Providers are also able to pull your credit score when setting up your account. If your score is low you may be required to pay a high deposit in order to get your utilities connected.
Friends and Family
Your friends and family will be unable to pull a copy of your credit report (unless they know all of your personal information and can answer questions correctly, pretending to be you – in which case, it’s identity theft.)