Your annual credit report is used to consolidate your payment and debt information. It’s a great tool you can use to improve your credit, set budgets and ensure your credit information is accurate.
Your report is also a great tool that other people can use to measure your creditworthiness and predict your future behavior in terms of finances. Below are some of the situations that may cause others to see your annual credit report.
Pay back taxes
The IRS may be able to see your credit report if you owe them money and do not pay. They can use the report to see what assets you have that can be used to pay your back taxes.
Submission for rental application
If you are looking at renting an apartment, the property manager will often see your report to determine if you want to take care of the apartment and pay your rent on time. The rental application will usually state that it gives the administrator the right to view your report.
Requesting a loan
Whether you are buying a home, starting a business or buying a car, applying for a loan almost always initiates a credit request from the lender. As with the rental application, the loan documents often state that the lender has the right to withdraw your credit report.
This is an area that really shows growth in terms of people pulling your report. More and more potential employers are drawing on credit report prospects to get a feel for their behavior, responsibilities and financial trends.
Having Your Account Go to Collections
If you have a past due account and it is sent to a debt collection agency, they will withdraw your report. They use the report to determine who you owe money to and get a sense of what their chances are of collecting the money you owe them.
Application for insurance
Many insurance companies believe that there is a link between insurance claims and credit history. Many believe that as an individual’s credit rating declines, their chance of filing an insurance claim increases. Like the job search situation, this scenario is becoming more and more popular.