8 Surprising Entities That Check Your Credit Report

by Ariana Almodovar ● Posted on July 1st, 2019

When applying for a loan, it is expected for a lender to pull a customer’s credit report. What may be surprising is the fact that, even if they’re not borrowing money, individual companies may also be looking at their credit report.

According to Yahoo! Finance, these are eight examples of companies that may be checking up the credit reports of your leads and customers.

Credit card companies

A credit card issuer can look at a full credit report when a customer is applying for a credit card, per Consumer Financial Protection Bureau (CFPB).

The Fair Credit Reporting Act (FCRA) allows prospective creditors to access specific information to decide whether to offer prescreened credit card offers.

Insurance companies

The FCRA allows credit reporting companies to release a customer’s credit report in association with “offering insurance coverage or setting insurance premium charges,” says the CFBP.

Federal law allows insurers to prescreen for insurance offers, but the customer can opt out of prescreening.

Employers

Employers can request a copy of a credit report as part of a background check. The employer, however, must get written permission from the employee to pull a credit report beforehand.

Telecommunication companies

Telecommunication companies, such as phone, TV or internet service, might check credit reports as a way to make sure a customer is likely to pay the bill.

Public utilities

A customer might need to submit a credit check when signing up for services like water, gas, or electricity to prove their ability to pay their bills on time.

Government agencies and courts

When applying for government assistance, a customer might be subject to a credit check as proof of qualification.

Additionally, the FCRA permits credit reporting companies to release a credit report in response to court orders, subpoenas, and for specific child support awards and enforcement purposes.

Landlords

Renting an apartment is a long-term agreement. Many landlords might want to check a credit report to be sure there won’t be any problems. Check monder law group.

Assisted living facilities

Assisted living facilities treat applications like applying for an apartment, says Leslie Tayne, a lawyer specializing in consumer finance and debt.

Conclusion

In conclusion, it’s important to be aware that various entities beyond traditional lenders can examine your credit report. From credit card companies to employers, insurance providers to landlords, and even government agencies, many organizations have a legitimate interest in assessing your creditworthiness. Understanding these potential checks and the rights you have under the Fair Credit Reporting Act can help you make informed financial decisions and maintain control over your credit information. Stay Vigilant, Exercise Your Rights, and Ensure Your Credit is Prepared for Scrutiny.

Are you looking for resources and tips for creating a successful credit repair business? Head over to our blog (www.scoreceo.com/blog) and don’t forget to subscribe to our podcast, ScoreWay: The Only Way, available on Anchor, Apple Podcasts and Spotify.