A lender will pull an applicant’s credit report for virtually any loan application. However, even if you are not applying for loan certain companies will look at your credit report before approving you for services.
MoneyTalk News lists 8 types of companies that will look at your credit report of your clients and leads.
1. Credit card companies
Credit card companies will run a full credit report when applying for a credit card (Consumer Financial Protection Bureau CFPB).
Potential credit card companies can also have recourse to decide whether if your client is a good enough risk to offer prescreened credit card. Thus the deluge of offers in the mailbox. This is allowed under the Fair Credit Reporting Act (FCRA)
2. Insurance companies
According to the CFPB, Insurance companies are allowed by the FCRA to provide credit reports in conjunction with offering insurance to or seeing premiums for your clients.
Although prescreening is allowed by federal law, the customer seeking insurance can opt-out of the process.
Requesting a credit report by a potential employer is not uncommon in association with a background check. The employer must get a potential employee’s written permission before they can pull a credit report.
4. Telecommunication companies
Companies that handle phones, television, internet and the like may draw a credit report ignorer to determine your clients’ bill payment history and make a determination of the likelihood that they will pay their bill in a timely fashion.
5. Public utilities
In order to secure gas, water or electric service, a person could be asked to provide a credit report to determine if their bill payment history is in line with what the utility companies deem and responsible.
6. Government agencies and courts
Government assistance is a service that is constantly being jammed by unscrupulous people. These agencies, when people apply for assistance could be subjected to a check of their credit in order to prove they qualify.
Also, as permitted by the FCRA, credit reporting agencies can be required to release the credit history of a person in regards to child support and enforcement.
Landlords or apartment management companies often require a credit check for potential renters to qualify them for lease. This provides a good barometer of their timely and late payments.
8.Nursing homes and assisted living facilities
You can be sure, that when applying for assisted living that you will be subjected to a credit background check. Assisted living facilities treat applications just like applying for an apartment.
While these are the main 8 types of companies that can look at your credit if we have missed any let us know on our Facebook page.