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Who Can Legally Pull Your Credit Report?

Last Updated: June 1, 2011

The last thing you want is for your credit report to fall into the wrong hands. Not only does your credit report contain information about you, such as your Social Security number, that identity thieves can use to incur debts in your name, it also contains a thorough record of your debts and accounts - something you aren't likely to want to share with anyone unless it's absolutely necessary. The Fair Credit Reporting Act (FCRA) protects each consumer's private information by restricting credit report access only to those who have permissible purpose to conduct a credit inquiry.

Banks and Credit Card Companies

Banks and credit card companies make a profit by loaning money to consumers and then collecting interest on the loan amount. When you apply for a loan or credit card, your lender reviews your credit record to determine how likely you are to repay your debt responsibly. The lender then assigns you an interest rate based on your risk level via a process known as price-based risk assessment.

Your credit report contains all the information your lender needs to conduct a price-based risk assessment. Although many lenders will ask you for your permission before pulling and reviewing your credit report, they are not legally required to do so.

Prospective Employers

If you plan to apply for a new job in the near future, be aware of the fact that more and more prospective employers are reviewing applicants' credit records before making hiring decisions. Each employer's reason for conducting credit inquiries differs, but many look to see how responsibly you pay your debts since, for many, this is an indicator of how responsibly you will perform at your job. Still others look to credit reports to determine if your level of debt is high enough to make you a theft risk to the company.

A prospective employer must have your written permission before pulling a copy of your credit report. If the employer decides not to offer you the job based on information within your credit records, it must notify you of that fact and notify you of your federal right to a free credit report based on adverse action.

Debt Collectors

Your credit report contains your most recent address and your previous addresses for the past five years. If a debt collection agency cannot locate you, it may pull your credit report as part of the skip-tracing process. Debt collectors also conduct credit inquiries in order to evaluate your assets and determine if you make a good candidate for a lawsuit. Like lenders, collection agencies have permissible purpose to access your credit records and do not require your permission to do so.

Landlords

If you decide to rent a house or apartment, you can expect to undergo a credit check. Landlords check your credit to ensure that you pay your debts on time. Renters who pay other creditors on time are more likely to also pay their rent in a timely manner.

When reviewing your credit history, landlords pay close attention to any past evictions you have on file. Evictions are public records and, as such, appear on your credit report for up to seven years. Regardless of whether or not you pay your debts in a timely manner, a previous eviction serves as a red flag for many landlords and could negatively affect your ability to get approved for housing.

Pulling Your Own Credit

Companies you do business with are not the only ones who can access your credit history. The FCRA gives you the right to request one free credit report each year from the credit bureau of your choice. Some states, such as Georgia and California, provide residents with two free credit reports per year. Taking advantage of your right to a free copy of your credit report helps you identify any errors your report contains and work toward correcting them.

The FCRA prohibits the credit bureaus from releasing your credit history to any company or individual that does not have permissible purpose to view it. Should this occur, you have the legal right to file a lawsuit against the person or business that requested your credit report without your permission.