However, the lender does not have to offer you the loan if they determine that you do not meet their other qualification standards. These types of applications will appear as a flexible credit application on your credit report, but they will not affect your credit score. In addition to the invasion of privacy, consumers could suffer emotional and reputational damage, as well as financial consequences, if someone gains unauthorized access to their credit report. For this reason, you can obtain both actual damages and punitive damages if you sue someone who uses your credit report without an “authorized purpose” and prevails. Your legal fees may also be covered. The FCRA is responsible for all employees of credit reporting agencies who provide unauthorized persons with a copy of your credit report. The FCRA also holds accountable those who receive your credit report without an “authorized purpose”. For example, can your spouse get a copy of your credit report to gain leverage against you during the divorce proceedings? Or can a car dealership perform a credit check on you when buying a car without your permission? The Fair Credit Reporting Act sets out what are the “eligible purposes” for someone to view your credit report. The credit bureau and the person requesting access without “authorized purpose” may be held liable if they violate the FCRA. And if you decide to pursue such a case, you must act before the expiration of a statute of limitations. In some cases, a “soft draw” of your loan does not require your explicit permission. For example, a lender who wants to give you a loan may apply to approve you in advance – or you may have received pre-approved credit card offers even if you didn`t apply for them.
These non-binding requests have no effect on your creditworthiness. If the institution decides to grant you loans or insure you, it may retrieve your credit report before making a final decision. This would be a “difficult request” that could affect your credit score. iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. You might even face an identity theft problem if someone wants to take out credit on your behalf. That`s why it`s important that you keep track of your credit reports and report any errors immediately. Credit card expiration date: what it does and where to find it For this reason, the Fair Credit Reporting Act has established certain “eligible purposes” that describe the circumstances in which a person may have access to your credit report.
In addition, a lender cannot obtain your credit report, which states that it is used to decide whether or not to grant a loan and then use the information for other purposes. A credit bureau cannot inadvertently provide your credit report for acceptable purposes simply because you have the same name as another person whose credit report is requested. Instead of just using their name, they should also use other information to determine if they are actually providing a report to the right person. It would still be a violation of the FCRA if a credit bureau issued a disclaimer stating that it creates a credit report based solely on name matching, and that it is up to the user to ensure that the report belongs to the right person. If you look at your credit report, you`ll name those who initiated credit draws – if you don`t recognize a name, look inside to see if it was an authorized exam. If not, contact a lawyer who will work with you to enforce your FCRA rights. Your credit report is a sensitive document that gives an overview of your financial situation, and not everyone can access it. So how do you know someone has done an unauthorized review of your credit report? See related topics: Which credit reporting agencies use card issuers to check your credit? See Related: Credit Report Example – How to Read a Credit Report You may be wondering why you always keep a credit card older than your firstborn, but before you finish it, it`s important to weigh the pros and cons. One of the reasons for the adoption of the FCRA was therefore “to prevent undue interference with the individual`s right to privacy in the collection and dissemination of credit information.” The editorial content of this site is based solely on the objective evaluation of our authors and is not determined by advertising dollars.
It has not been provided or ordered by credit card issuers. However, we may receive compensation if you click on links to our partners` products. Stay up to date on the latest credit card news 一 from product reviews to credit tips 一 with our newsletter in your inbox twice a week. Financial institutions sometimes receive a list of consumers who meet certain preliminary credit criteria to be pre-selected before making an offer of credit or insurance. This type of consumer report allows the lender to focus its marketing efforts on consumers who are more likely to meet their credit standards. See Related: Free Credit Reports – How to Get Real Free The FCRA defines the “authorized purposes” for which a person or entity can access your credit report. A credit bureau should only provide a copy of your credit report in the following cases: Your credit report is a sensitive document that should only have authorized access The FCRA clearly states the situations in which a credit bureau should share your credit report with someone. These include: Your credit report is a sensitive document. It serves as a barometer of the state of your finances and how you manage them, and it includes entries such as the amount of credit you have, as well as information about your mortgage and other debts.
