In order to check your credit, a person or company must have your written permission and a legitimate reason for checking your credit. There are legal penalties for checking someone's report without permission.
Lenders
Lenders, including credit card issuers, will check your credit before loaning you money. The better your credit report, the more likely you will get a lower interest rate on your loan.
Potential Employers
According to MSN Money, over one-third of employers run a credit check before hiring individuals, especially for positions which would require handling large sums or secretive information that could be sold.
Insurance Companies
MSN Money claims most car insurance companies check your credit score and adjust your insurance rates accordingly. A good credit score can save you over 30 percent on your premiums with some insurance companies.
Considerations
The credit report employers see is different from the report that is sent to lenders because employers do not get your birthday or your credit score. Not being able to see your birthday helps reduce the chance of age discrimination in the employment process.
Your Rights
If your application, regardless of whether it is for a loan, line of credit, job or something else, is turned down because of information in your credit report, the person or company is legally obligated to inform you of the information so you can take the appropriate steps to correct it if needed.
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