Credit reporting companies make their money collecting and compiling data on the consumer (you), regarding credit history. They then take this information called a credit report and sell it to creditors and other interested parties. If you are curious who can request a credit report on you and under what circumstances? We answer those questions below.
Federal Credit Reporting Act
The Federal Credit Reporting Act (FCRA) stipulates and places into law what legally can happen regarding credit reports. According to the FCRA, there are many entities that may pull a credit report under certain circumstances. The common terminology used to determine if someone can pull a credit report on you is called permissible; while a situation when someone cannot pull a credit report on you is called impermissible.
Who Can Request a Credit Report on You?
There are many different agencies, entities, and people that can pull a credit report on you for permissible purposed listed below are a few more common ones:
- Banks and Credit Unions
- Insurance Companies
- Creditors and Potential Creditors
- Government Agencies
- For more information on the topic please refer to the following blogs, that you might find useful. Impermissible Credit Report Use, Who Can look at Your Credit Report.
Permissible Purposes of Consumer Reports
Section 604. of the FCRA lists the permissible circumstances that a consumer reporting agency (Credit Bureau) may furnish a consumer report (credit report). Listed below are common permissible circumstances, for a complete list please refer to the, (FCRA).
A Court order or Subpoena:
- With written consent from the consumer it relates to
- Someone who intends to use the information for a credit transaction
- Employment purposes
- Use for underwriting insurance\
Many different businesses now require credit checks or down payments of a set deposit amount to establish service: Utility companies, Insurance agencies, Phone providers, and cable/internet providers are a few.
In the last ten years, credit has become a more popular exchange system between consumers and merchants; along with the fact that there are more and more people every year looking for services. The combination of these two factors has made it so credit history can be used as a reliable source to vouch for your payments as a customer, and a necessary tool to keep track of the creditworthiness of so many people. There are many different entities that can pull a credit report on you; however, there are permissible circumstances and not just anyone has a right to that information.