Who Can Access Your Credit Report?

Who Can Access Your Credit Report?

Organizations that can access your credit report include:

• Banks
• Credit card companies
• Mortgage lenders
• Other lenders
• Landlords
• Utility providers
• Insurance companies
• Employers
• Certain government entities

Under the federal Fair Credit Reporting Act (FCRA), no one can check your credit report without a "permissible purpose"—that is, a legitimate need to assess your financial reliability.

In addition to a permissible purpose, most entities need your written permission before they can review your credit report. Signing a loan, credit card or insurance application generally counts as giving your permission, but landlords and employers must provide separate consent forms for you to authorize a credit check.

There are also some situations where your permission isn't necessary, such as when a credit card issuer reviews your credit report as part of managing your account.

Lenders

When you apply for a credit card, mortgage, line of credit, auto loan or other form of credit, lenders evaluate a variety of factors, including whether you're likely to make your payments. Checking your credit report shows them your history of managing credit. If your credit report contains lots of late payments, accounts in collections or high debt levels, lenders may consider it a red flag. If your credit report demonstrates consistent timely payments, low credit utilization and paid-off credit accounts, on the other hand, lenders may be more willing to extend you credit and offer more favorable terms.

Learn more: How Do Lenders View Your Credit?

Employers

Employers can see a modified version of your credit report that doesn't include your credit scores, birth date or other personal information protected by equal opportunity laws. Credit reports that employers see typically include your payment history, account balances, available credit and any bankruptcies or foreclosures.

Employers may use your credit report to verify your identity. They might also use it as an indicator of how well you manage your finances. An employer may be reluctant to hire a candidate who has lots of debt or a bankruptcy, especially for a job involving access to money or financial accounts.

If an employer decides not to hire or promote you based on information in your credit report, the FCRA requires them to follow certain steps. These include informing you in writing, sharing the credit report with you and giving you a chance to dispute the information in it.

Tip: Some states or municipalities prohibit the use of credit checks in employment decisions. Check with your state's labor department to see if you live in one of them.

Landlords

Landlords and property management companies usually check your credit when you apply for a rental property. They want to assess whether you'll be a reliable tenant, one likely to pay rent on time. Landlords will review items on your credit report such as your payment history, debt accounts and balances. Negative entries such as late payments, repossessions or accounts in collections could lead to denying your rental application.

Utility Companies

Utility providers may review your credit report when considering your application for services. A history of late payments, accounts in collections or other negative marks on your credit report typically won't keep you from getting utility services, but you might be asked to make a security deposit. The utility may also require a cosigner or ask for a letter of guarantee from someone who agrees to pay your bill if you can't.

Banks

Banks don't check your credit report when you apply to open an account, but they do review your ChexSystems report. ChexSystems is a specialty consumer reporting agency that generates reports with information about deposit accounts you've held with banks and credit unions.

Your ChexSystems report may show things like bounced checks, overdrafts, suspected fraud or unpaid negative balances. If a bank has reason to consider you a risk after reviewing your ChexSystems report, they might deny your account application.

A bank may check your credit report if you're applying for a credit card or loan they offer, you apply for an insurance policy or any other reason allowed under the FCRA. They may also review your ChexSystems report once you have an open account for legitimate business reasons, such as confirming that you still meet their requirements for maintaining an account.

Government Agencies

Government agencies may review your credit report to determine your eligibility for government benefits or licenses issued by the government or to help determine child support. They might also check your credit report as a result of a warrant, court order or federal grand jury subpoena.

Collection Agencies

The FCRA allows collection agencies to check your credit report if the review is part of their collection efforts. Collection agencies may use a credit report to find your contact information, for example.

Insurance Companies

Most states allow insurance companies to check your credit when you apply for coverage. Insurers review specialized credit scores called credit-based insurance scores, which use information from your credit report to predict how likely you are to file a claim. Seven states—California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah—prohibit the use of credit-based insurance scores when offering or renewing policies or setting premiums for home and auto insurance.

Companies Making Preapproved Offers

Insurance companies, credit card issuers and lenders you don't have accounts with can review your credit score when evaluating your eligibility for preapproved offers. If your credit score fits their criteria, they must honor their offer (although that doesn't mean you'll get approved). If you don't want companies to check your credit report for this purpose, you can opt out of preapproved offers.

Who Can't Access Your Credit Report

The FCRA restricts access to your credit report so that no one can see it without your written permission. That includes the general public, your friends and your family members. Only entities with a permissible purpose, including lenders, insurance providers and landlords, can see your credit report. In addition, some states have their own laws governing how consumer credit reports can be used.

Learn more: Can Someone Run a Credit Check Without My Permission?

How to Get Your Credit Report

You can get a copy of your credit report from each of the three consumer credit bureaus for free. Registering for a free Experian account gives you access to your Experian credit report at any time, and also allows you to check your FICO^® Score^Θ for free.

You can also access your credit reports from all three credit bureaus for free once per week at AnnualCreditReport.com. Regularly reviewing your credit reports can help you spot potential fraud or identity theft and identify actions that might help improve your credit score.

Tip: If you find inaccurate information in your credit report, you have the right to dispute it with the relevant credit bureau. Disputing credit report information is free and can typically be done online, by phone or by mail.

Learn more: What to Look for When You Review Your Credit Report

How to Limit Access to Your Credit Report

If you'd like more control over who can see your credit report, you have the right to place a security freeze (also known as a credit freeze) on your credit file. A security freeze limits access to your credit file so that lenders can't check it to process applications for credit. Placing a security freeze is free and can help avoid fraudulent applications for loans or credit cards in your name.

Keep in mind that before applying for new credit, you'll need to unfreeze your credit so that the lender or credit card issuer can access your credit report. You can lift a security freeze and then reinstate it, or temporarily lift it for a short period (such as a day or a week) and have it automatically reinstated.

Tip: A security freeze must be placed or lifted separately with each of the three credit bureaus.

Freezing your credit doesn't completely block access to your credit report. The following entities can still view it:

• Existing creditors checking your credit as part of managing your account
• Employers, insurance companies, utility providers and landlords
• Marketing companies and creditors prescreening consumers for credit offers
• Government agents
• Debt collectors
• Companies seeking to verify your identity

Unlike the hard inquiries that occur when you apply for credit, these credit checks are considered soft inquiries and do not impact your credit scores.

Learn more:Credit Freeze and Credit Lock: What's The Difference?

Take Control of Your Credit Report

Knowing what's in your credit report helps you understand what lenders and others can see. To get alerts to important changes in your credit report, consider signing up for free credit monitoring from Experian. It's a convenient way to keep tabs on your credit report and get valuable insights into your finances.