Your credit report is a summary of your financial history. It is an extremely important document in that it can determine whether or not you get a mortgage, car loan, or other loan, as well as what interest rate you’re charged for those loans. Your report can even determine whether or not you can rent an apartment or whether you get hired for a job. So if you’re wondering, “should I check my credit report?” the answer is definitely yes. A credit check online will give you the financial peace of mind you’ve been seeking.
The Fair Credit Reporting Act (FCRA) specifies who can access your credit report and why. The FCRA states that a company must have a legitimate reason to view your credit report. Any organization or individual who obtains a copy of your credit report under false pretenses can be fined and jailed for up to a year.
Lenders and merchants can buy memberships to credit bureaus so they can quickly and easily do a credit history check on potential customers. Credit bureau members have to sign a contract stating that they will only access credit files when considering persons for extensions of credit, employment, or other legitimate business purposes.
The types of organizations that can access your credit report and perform a credit history check are any organizations with a legitimate business need that want to check your credit history. These organizations include:
Lenders
Insurance companies
Landlords seeking a credit check for renters
Credit card companies
Companies where you are seeking employment (only with your written consent)
Organizations considering your application for a government license or benefit (if the agency is required to consider your financial status)
State or local child support enforcement agencies
Government agencies (usually can only look at your name, address, former addresses, and current and former employers)
Other organizations you’ve initiated business with
Keep in mind that any time your report is viewed by one of the above organizations, a “hard inquiry” gets recorded on your credit report. (When you request your own report, it is considered a “soft inquiry.”) The more hard credit reporting inquiries that show up on your credit
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