Who’s Checking Your Credit?

Here’s another reason you should order a copy of your credit report every year. Because lots of other people are looking at it! The Fair Credit Reporting Act says a company must have a legitimate reason to do so. Here are some of the people who might:

 Lenders. A good credit score helps you qualify for the best rates on mortgages, car loans, credit cards, etc.
 Insurers. Many home and auto insurers use your score to help determine your rates.
 Landlords. They view your credit as a measure of your responsibility to pay bills on time.
 Potential employers. With your consent, they can look at your score but they don’t get to see as many details as lenders.
 Government agencies. They can only look at limited information.

When a business checks your credit report because you made an application for a credit card, loan or other service, a “Hard” inquiry gets recorded on your credit report. These inquiries impact your credit score. “Soft” inquiries (made by you or a business you already have an account with) do not affect your score.

You are entitled to order a free credit report from each of the three U.S. national credit bureaus every year. Make sure you go to the only source authorized by law at www.annualcreditreport.com.