8 types of businesses that review your credit report



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When you apply for a loan, you expect the lender to pull your credit report. After all, you are borrowing money. It makes sense for your lender to want to see what kind of risk you present.

But what about other types of businesses?

You might be surprised to find that even if you don’t borrow money, some companies can review your credit report.

Here are examples of the types of businesses that might check your credit.

1. Credit card companies

A credit card company can look at your credit report when you apply for a card. However, if you are a customer, that company can also view your credit report at any time, according to the Consumer Financial Protection Bureau (CFPB).

In addition, potential creditors can access certain information in your credit report to determine if they should make what is known as a “pre-selected” offer for a new credit card.

Screening is permitted under the federal Fair Credit Reporting Act, but you can opt out of screening. We break the process down in “The Secret to Stopping Credit Card Spam Email Permanently”.

2. Insurance companies

The Fair Credit Reporting Act also allows credit reporting companies to publish your credit report in association with “providing insurance coverage or setting insurance premium charges,” says the CFPB.

While federal law allows insurers to prequalify you for offers, it also gives you the option to opt out of that prequalification.

3. Employers

As part of a background check, employers may request a copy of your credit report. The Fair Credit Reporting Act allows credit reporting companies to publish your report for employment purposes.

However, the employer must obtain your written permission to obtain your credit report beforehand. You can refuse, but that could be grounds for the employer to deny your request, according to the Federal Trade Commission.

4. Telecommunications companies

When you sign up for phone, TV, or Internet service, the service provider may check your credit.

It’s not exactly a loan, but some companies want to make sure you’re likely to pay your bill, says James Garvey, CEO of the Self Lender credit site.

“The telecom provider wants to verify whether the customer owes the provider itself or another telecom provider money,” Garvey told Money Talks News.

5. Public services

Subscribe to water, gas or electricity? You may need to go through a credit check, says Logan Allec, chartered accountant and founder of financial education website Money Done Right.

“Utility bills are usually paid in arrears, which means you’re billed for use after the fact,” Allec told Money Talks News. “In a sense, these companies give you a short-term loan. They let you use $ 50 of water last month, and you have until a certain date to pay it off.

If your credit score is low, Allec points out, the utility might not be confident in your ability to pay your bills on time and might charge you an initial deposit.

6. Government agencies and courts

“You might think the government shouldn’t have to ask for your credit,” Allec says, “but sometimes it actually has a good reason to. “

Allec points out that when you apply for government assistance, you may be subjected to a credit check to see if you really qualify.

Additionally, the Fair Credit Reporting Act allows credit reporting companies to publish your credit report:

  • In response to court decisions
  • In response to subpoenas
  • For certain child support payments and for enforcement purposes

7. The owners

Looking for new excavations? Your future homeowner may want to take a look at your credit report, says Leslie Tayne, a New York-based lawyer specializing in consumer credit and debt.

She points out that renting an apartment is a long-term deal and that many landlords want to make sure you don’t cause problems.

“While rent is not usually reported to the credit bureaus, your credit report can give an indication of your overall likelihood of paying your bills on time and your financial responsibility,” Tayne told Money Talks News.

In some cases, she says, if you have a bad score, you may need to provide a larger security deposit.

8. Service residences and retirement homes

Expect to be subjected to a credit check when you apply to live in an assisted living or nursing home.

“These facilities treat requests like a request for an apartment, especially since the costs are generally high,” says Tayne. “Having good credit shows the property that you are responsible for your payments and that you will use whatever funds you have available to pay for the stay.”

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