6 Ways Companies May Use Your Credit Information
Many people believe that the only time their credit is used, is when they apply for credit to buy something or to lease an apartment. However, the information collected by credit bureaus are often shared with other businesses. As long as these businesses have a valid reason to review your credit report, they can, but only with your permission. These reasons include but now limited to:
The IRS may pull your report if you have a tax debt and asking to make payment arrangements.
Certain organization that issue professional licenses such as nurses, police officers, and real estate agents may review your report, but only with your permission.
Many insurance companies now consider past payment patterns as part of their process in determining insurance premiums.
Some employers may view and use your credit report as part of their employment process to help assess your character. Even your current employer can review your credit report. However, the report that employers receive usually does not contain any account numbers, year of birth and your spouse’s name.
Most creditors will use your credit report to help them decide whether to grand or deny credit. Keep in mind, when you complete and sign a credit application, for example, in a store, you give them the right to pull your credit report.
If you already have credit with a company, this is known as an established relationship. These creditors can review your credit from time to time to offer you more credit products or just to check if you are still in good credit standing.
So as you can see, your credit report is multifaceted. The information it contains, does more than enable you to purchase a car, buy a house, shoes, clothes, and to take that long desired vacation.
It can also help you to obtain a license, decide if you get a job or not, as well as determine how much more or less you will pay for insurance. Knowing this, is all the more reason you should take control of your credit. Know what is in your report and be mindful of who you allow you review your report. Have a great Sunday. Until next time…
