More People Who Check Your Credit Report
It’s not just lenders who are interested in your credit history…
Most people know their credit report has a direct impact on their ability to get approved for a loan or credit card and that it helps determine the interest rate and fees they’ll pay for the privilege of borrowing. But what many people don’t know is that other companies and institutions are interested in your credit report too. Here are some other people who may be looking at your credit history besides lenders:
1.) Rental / Apartment Owners: Little or no credit history can mean limited apartment rental opportunities. In many housing markets, landlords often have the ability to pick and choose their tenants. Regardless of your ability to pay, they will frown upon an applicant who has bad or no credit history to back up the risk they take when offering a contract.
2.) Potential Employers: The Society for Human Resource Management reports that 96 percent of companies do background checks. The difference between getting hired or not may depend on your credit report showing a clean financial record. One late payment won’t raise any red flags but a pattern of irresponsible behavior may. Companies are looking for employees who are productive, responsible and least likely to steal from them.
3.) Insurance Companies: Insurers routinely base their premium rates on credit histories. Their theory is that credit is the best predictor of whether someone will file a claim. Eighty-two percent of automobile insurers decide to accept an application for insurance based on their credit report more than the applicant’s driving record according to a report by the Texas Department of Insurance.
4.) Wireless Phone / Utility Companies: Even the most basic services can be affected by a bad credit report. If your report shows a habitual pattern of late or default payments, you may be denied gas, electric or cell phone services. If they do accept your application, you may be forced to pay a significant deposit, have a co-signer or pay higher rates.
These are just a few of the reasons you need to check your credit report on a regular basis and insure everything is accurate and up-to-date. Luckily, a federal law enacted in 2005 makes it even easier to get a copy of your credit report (for free!). The three reporting agencies have set up a central website, a toll-free telephone number and a mailing address to access your free credit report– once per year.
To order your free credit report, visit Annual Credit Report.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Or, consider credit monitoring services to monitor your credit and receive alerts to any changes on your report.
July 25th, 2007 at 8:23 am
[…] No other document contains as much information about your borrowing and spending habits as your credit report. It’s the main factor in determining if you qualify for a loan or credit card and it guarantees the interest rate you’ll receive. Plus, many other people check your credit report besides lenders >>> […]