Who Can Legally View Your Credit Report?

Your credit report is a vital part of your personal finances as its contents show your creditworthiness and can determine whether you will be able to get a business loan, receive financing or even possibly get hired for a job. Many different groups and individuals can legally view your credit report as long as you first provide them with the permission to do so.

History

The Fair Credit Reporting Act was signed into law in 1970 to streamline the credit reporting process and define which people and organizations can gain access to someone's credit report. It allowed outside organizations such as debt collection agencies or creditors to view your credit report. It also stipulated that, in most cases, you must first provide authorization before anyone can see it. A study conducted by the Public Interest Research Group revealed that nearly 80% of all credit reports have at least one piece of inaccurate information which led to the Fair and Accurate Transactions Act being signed into law in 2003. The act allows citizens to challenge information on their credit report quickly and easily.

Function

Consumer reporting agencies gather information about your debts and monthly payments. The agencies then forward their findings to a credit bureau. The credit bureau then analyzes the information to create your credit report and decide on an overall credit score. The consumer reporting agency then retrieves the finalized report and makes it available for individual citizens or organizations for viewing. A viewing of the report can determine if you have good enough credit to be provided with a service that you have to pay back over time...or simply to check your level of monetary responsibility.

Types

There are many different groups that can legally view your credit report. When you apply for a new job, your potential employer can check your credit report to see if you have a history of missing payments to determine if you will be responsible on the job. Banks and car dealerships can check your report when deciding if you are eligible for a loan. Insurance companies will also check your credit report when you apply for a new plan. Some private individuals can view your credit report with your permission when they are considering employing you.

Considerations

An organization must always see a government issued I.D. and have your written consent on a legally binding document to view your credit report. Most companies will view your credit report through a consumer reporting agency's Website, but they are also given the option to have a physical copy mailed to them. Negative information about your credit, such as missed payments, defaults on loans, bankruptcy, or having your bank account involuntarily closed by the bank will remain on your credit report for between seven and ten years.

Benefits

You can always legally view your own credit report at any time which you should do regularly to see if there are any discrepancies or inaccuracies that need to be corrected. You can also check your credit score to see how good your chances are of receiving financing for a large purchase or a new line of credit.