Every time someone checks your credit score, it takes a hit. Do you know who all is able to check your credit and why? Also, how does checking your score affect it? Let’s take a deeper dive.
There are several entities that can check your credit score. When you think about institutions checking your credit, you probably think about places that loan you money for large purchases, such as a new car or a house. Or you might think about those who will supply you with a credit card. However, there are many other types of places that can check your credit score too. The list of those who may want to look at your credit include:
When you are attempting to apply for any type of loan, the lending institution will need to check to see how your credit it. Whether you are applying for a mortgage or a new car loan, your score plays a vital role in the interest rate you’ll get.
When you apply for a job, you might just have your prospective employer looking at your credit report (not the score). Some employers want to use this information to help guide them in the decision-making process. However, if they do want to check your score, they must get written permission.
When you fill out an application to rent a home, the landlord will run a check on your credit report. They want to see how well you pay your bills. They will be looking to ensure you don’t have delinquencies, bankruptcies, foreclosures, or evictions.
You may not know that your insurance rate is not only determined by your driving history. Your credit history plays a part too. Insurance companies may charge a higher rate if you have blemishes on your record. So, it’s crucial to keep the credit report clean.
We all need to have utility services. Water, electricity, and phone services are all part of living in a home. However, when you get started with a utility company, they will want to look at your credit history. If there are issues, they will likely charge you a security deposit before hooking up your utilities.
Sometimes certain government agencies will need to check your credit report. This could be to help facilitate an application for a government-type resource.
When the debt collectors come calling, they may call for more than the bill. They will have viewed your credit report so they know more about your history of payments. Debt collectors have a view of your other accounts and how you are doing with paying them. This could impact their dealings with you.
Whenever an institution pulls your credit score or report, it can have an effect on your score. There are both hard and soft inquiries of your credit, and only the hard inquiries will impact your score. Some institutions, such as prospective landlords or utility companies, may only do a soft pull of your credit. You can inquire which one they are doing or even request a soft pull if you’re worried about the hit to your credit. However, when it comes to approval for a loan or credit card, the lender will have to make a hard inquiry.
If you keep your credit score in good shape, you won’t have to worry too much about the occasional institution checking your credit. At Credit Diva of Dallas, we can assist you with a thorough credit repair, so your score increases. Get in touch with us for more information.