Your credit report contains information that many businesses use to make decisions about your payment habits. Here are some businesses that might check your credit report.
1. Your Current Creditors and LendersIf you already have a credit card or loan, the bank will check your credit report to decide whether to keep your account terms the same or to raise them. If there is negative information on your credit report, your creditor might raise your interest rate, lower your credit limit or close your account completely.
When you apply for a new credit card or loan, the bank willf check your report first to decide whether to approve your application, then to decide what credit limit or loan amount to give you. Finally, the information in your credit report has an impact on the interest rate you get.
Landlords check your credit report as part of the rental application process to determine whether they should rent to you. If you have recent delinquencies, foreclosures, or evictions on your credit report, your rental application could be denied.
Insurance companies check your credit report to decide whether they should insure you and at what rate they should give you insurance. If you have negative information on your credit report, like late payments and collection accounts
, you could have a higher insurance rate than consumers without negative information.
5. A Prospective or Current EmployerPotential employers use your credit report to make hiring decisions. Your current employer might also review your credit report before giving you a raise or promotion. Bankruptcy, account delinquencies, and high debt levels could keep you from getting a job or from getting a raise or promotion.
Debt collectors view your credit report to get information that will help them collect the debt from you. This includes your current address and employer information. They may also view other accounts on your credit report to estimate whether you can pay the collection or not.