RoxanneWho could be peeking at your score? Find out the answer to that now.
Your credit report displays a history of your payment habits. It shows whether you made payments on time or not, as well as how many loans or credit cards you’ve taken out in the past.
While this information can give you insight into your behaviors as a borrower, it can do the same for companies looking to do business with you. By seeing your history, lenders or creditors can decide whether or not you’re a worthy borrower and how much they should charge you for a loan.
Although it’s probably no surprise that a company would pull your credit before lending you money for a car, for example, other companies want to see your score too. Here they are:
Potential Lenders and Creditors
Have you ever tried to buy a car or home with a loan? If so, you know that those potential lenders checked your credit report.
After viewing your payment history and seeing how much outstanding debt you have, the lenders or creditors can come up with an appropriate loan amount and interest rate, if approved.
Current Lenders and Creditors
Merely getting a loan or credit card doesn’t mean that the lender or creditor stops looking at your history. In fact, many loan terms tell you that they’ll be checking your credit periodically to see if any changes should be made.
If a lender or creditor sees that your credit report has new negative information, they could use that to lower your credit limit, increase your interest rate, or close your account altogether.
Debt Collectors
When you run into trouble and can’t pay a debt, collectors may look at your credit report to see where you stand. They can then use that information to determine if you can pay them or not.
They may also use the information on your report, such as our address and employer info, to find out ways to contact you, so you pay.
Employers
Some job interviews involve more than just questions about your strengths and weaknesses. Depending on the position, your potential employer may check your credit report to see if you’re worth hiring.
A current employer may check your credit too. They’ll do it if they need extra information before giving you a promotion. Account delinquencies and bankruptcies are two red flags employers tend to look for.
Government Agencies
Before qualifying for public assistance, a government agency may check your credit to determine eligibility. Other agencies could check your report if you need to apply for a government license or must make child support payments.
Utility Companies
All companies, even those that provide necessities, want to ensure you can pay them on time. Some utility companies will check your credit for this reason. If they find that your score is less than ideal, they may require a security deposit.
Insurance Companies
You may be the perfect driver, but a less than ideal credit score could lead to you paying higher insurance rates.
How to See Who’s Checked Your Credit Report
To find out who’s been looking at your score, look no further than your credit report. You can get one per year for free, and it will show you who’s looked at it in the inquiries section.
