Who Can Check Your Financial Report Card?

Your financial report card is the yardstick by which your credit worthiness is measured.

Experts always recommend reviewing your credit report periodically so that you can spot the negative items and correct them before others check them. Your financial report card i.e. your credit report and credit score tell a lot about how you are financially. They tell whether you are credit worthy or a risk. So banks, lenders and even utility companies among others check them when you submit your application for loan et al. By reviewing you credit report and score, you can also assess how much loan you can get.

Given below are list of companies who can check your financial report card and evaluate your credit worthiness based on it.

Just as you can check your credit report any time you want, banks, utility companies and even employers et al have the right to do so at the time of evaluating your application.

Banks – Banks and lenders loan money to individuals for buying home, car or for education. They in the business of lending money for profits. Therefore, before they lend money, they check the credit report and score of the applicant to ensure that he or she is capable of returning the money. They only want to protect their investment for being written off.

Getting a new car means excitement and thrill of driving in the open roads but there are more practical things to consider, which an auto insurer does before he gives the nod for the insurance.

Insurance Companies – All insurance companies like home and vehicle insurers check your credit report and score to judge whether they can insure you. Just like you would never invest in something that has no returns, the insurers too check your financial report to ensure that you are a worthy investment.
Credit Card Companies – Have you ever wondered how you get an offer for a pre-approved credit card even though you haven’t applied for one?Every time the credit card company pulls up your credit report, you get a credit inquiry that affects your score. Credit card companies get lists of people from the three credit bureaus. They pull your credit report to check your credit worthiness and then mail an offer if they find you credit worthy.
Utility companies – When you submit and application for water, electricity or telephone, your credit report is checked. The reason is that if you are unable to pay your bills, the company is unable to answer its investors.
Landlords – Just like lending institutions and other companies, landlords do more than take your word before agreeing to rent you that apartment. If your credit report is clean and shows a good payment history, then you can rent the apartment.
Employers – All prospective employers want to know that the applicant for the job is financially responsible. They check your financial report to know not only if your finances are in good condition and you pay your bills on time but also if you have a good employment record.
Government agencies – There are some government agencies that have the right to check your credit report any time they want to.

The Fair Credit Reporting Act is there to protect your rights but all the above-mentioned companies can check your credit report legally under the law. As per the Federal law, this right is granted to those companies for granting loan, offering employment, collecting debt, insurance, to confirm the authenticity of genuine business transactions and to certain government agencies to help them with their work.

Be alert and check your report before others do.