Banks And Other Lenders
A financial institute can check someones credit in connection with credit-related transactions, such as when they apply for a mortgage or car loan. Note that section 609 of the FCRA requires financial institutions that arrange mortgage loans and use credit scores in their decision making to provide the and additional information to the applicant.
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What To Do If Your Credit Is Pulled Without Your Consent
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You always make your loan payments on time and manage your credit responsibly. You even check your credit report for mistakes once a year to protect that great score. But what if your credit is negatively affected through no fault of your own?
Certain kinds of credit inquiries can knock down your credit score, and one that is done without your authorization can be especially worrisome. At best, you might have signed up for a service not realizing it would require a credit approval at worst, it could be a sign of attempted identity theft. Luckily, there are steps you can take to protect yourself and mitigate any possible damage that may occur from an unauthorized inquiry.
What you need to know about unauthorized credit inquiries:
- An unauthorized hard inquiry could be a sign of attempted identity theft.
- You should contact the lender and the credit bureau, and consider freezing your credit.
- Submit a complaint to the Consumer Financial Protection Bureau .
- Always monitor your credit report to catch mistakes early.
How Credit Works In The Us
You may have had a credit history before moving to the U.S., but most credit doesnt cross borders and it can work differently from country to country.
This means that your previous credit history generally wont count toward your U.S. credit scores. You should also know that a few things, such as the information thats reported to the credit bureaus or the way various factors are weighted in the U.S., may be different from how it works in your home country. Or you may come from a country that doesnt use credit at all.
But theres at least one thing that unifies credit around the world.
In terms of purpose, the purpose of a credit history is the same: Are you a good candidate to apply for credit? says Rod Griffin, director of public information for Experian, an American credit bureau. Thats the common thread in terms of credit reporting around the world.
Before we get into the unique aspects of a U.S. credit report, heres a quick refresher on credit.
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Can Anyone Check Your Credit Without Your Permission
Are you concerned that your stalker ex-boyfriend or nosy neighbor can easily check your credit?
You dont have to be or at least it isnt quite that easy. According to the federal Fair Credit Reporting Act, only those with a legitimate need can request and obtain a copy of your credit report. However, not all of them need your permission to view your credit reports.
The great thing about your credit reports is that they show you who has accessed them. There is a section that lists credit inquiries who made them and when. You can get your free annual credit reports through AnnualCreditReport.com from each of the major credit reporting agencies so if you havent taken advantage of that yet, that can be a good place to start.
As you read through the credit inquiries, you may recognize some of the parties listed, and you may not recognize others. Be sure to review the inquiries section on your credit report to confirm they are from permissible sources. The following requests are considered valid under the FCRA:
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Note that creditors and insurance companies may also access your credit profile without your permission to determine your eligibility for prescreened offers. Although these are considered soft inquiries and do not impact your credit score, you can request to be removed from their list by calling the number listed on your credit report. You can also call 1-888-567-8688 to opt-out of these offers.
Who Controls Who Can See My Credit Report
collect information about your credit history, and use it to create a creditreport. Companies which need to find out more about your financial habits will contact a creditreferenceagency to get a better idea of your relationship with your finances.
The information in your credit report comes from a range of sources, such as lenders, banks andcreditors.It’s worth bearing in mind that companies may share different types of information, and they might notsharethe same information with different credit reference agencies.
Each credit reference agency creates its own credit report, so the information each one holds may bedifferent.
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You Can See Your Credit Report
Once upon a time, credit reports were off-limits to consumers you couldnt even see the information lenders were using to make a decision about you. Fortunately, the law now gives consumers the right to view their credit reports. The law isn’t limited to credit reports, but other types of consumer reports that businesses use to process your applications.
Who Can Check My Credit Without Permission
In most of the cases above, the entities will need your permission to request and view your credit reports. There are some situations, however, in which a business will check your credit through a soft inquiry, also known as a soft pull, to determine whether you’re eligible for a preapproved offer. In many cases, businesses with a legitimate reason can initiate a soft pull without your permission.
Soft inquiries also occur when you check your own credit report or when you use credit monitoring services from companies like Experian. These inquiries do not impact your credit score.
Beyond soft pulls, there are other situations in which an entity may not need your permission to check your credit. According to the FCRA, some of those situations could be:
- In response to a court order or federal grand jury subpoena
- In connection with your application for a license or other benefit granted by the government, when consideration of financial responsibility is required by law
- In connection with a child support determination, under certain circumstances
- In connection with a credit or insurance transaction not initiated by you, when a firm offer of credit or insurance is extended, and certain other restrictions are met
- For the purposes of a potential investor assessing the risk of a current obligation
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Is Using An Address Without Permission Illegal
There are many fraudulent activities related to bankruptcy, health care, etc., that criminals can perform by using someone’s address. It is illegal if a person uses your address for claiming benefits. For example, trying to gain insurance or proving their residence with your details. These are all wrong as they can violate the criminal laws written in the jurisdiction.
So, if you want to use someoneâs address or vice versa, you must request permission. Even if it is someone close to you, donât neglect the importance of asking for permission. You cannot simply assume they will be okay with it. If youâre so sure they wonât mind, then asking wonât hurt at all.
Keeping your sensitive data safe from everyone around is crucial. People can use this information to access your accounts and other personal belongings for their own benefit. Some of the things fraudsters can use your information for include:
What Can I Do To Keep Someone From Getting My Credit Report
Be vigilant and make sure to check your credit often so you know who is viewing your credit reports. This can help you keep track of your credit applications and can also protect you from fraud, as a new hard inquiry could indicate that a fraudster tried to open an account in your name.
Make sure you read all the fine print when applying for products or services and when inquiring about new credit. It may be unclear when a hard inquiry will be recorded as a result of an application or request, so it’s helpful to read carefully to make sure you’re not racking up inquiries without knowing it.
If you’re not sure who has checked your credit it the past two years, get a free copy of your credit report from Experian to see what appears. You can also check out Experian’s CreditWorksSM product to learn how you can periodically monitor your credit file and be alerted when changes occur in your credit file.
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What You Need To Know:
This alert explains things you can do to protect yourself from identity theft: credit freeze fraud alert and credit monitoring. The alert also answers frequently asked questions about each.
Also called a security freeze, a credit freeze is something you request from a credit reporting agency to restrict access to your credit report. When a freeze is on your account, any unauthorized third party who attempts to look at your file will see a code or message indicating that your report is frozen.
This makes it more difficult for identity thieves to open new accounts in your name because most creditors will demand to see your credit report before they approve new credit.
If a creditor cannot see your file, then the creditor should not extend credit.
A credit freeze does not prevent all third parties from seeing your report. Existing creditors, debt collectors acting on their behalf, and government agencies in limited circumstances will have access to your report.
But placing a credit freeze on your account will not affect your credit scorenor will it keep you from getting your free annual credit report, or from buying your credit report or score.
A fraud alert, unlike a credit freeze, will allow creditors to get a copy of your credit report if they take steps to verify your identity. For example, if you provide your telephone number, the creditor must call to verify that you are the one requesting credit.
There are three types of fraud alerts:
a. Initial fraud alert:
How You Will Know About A Cifas Warning
If there is a CIFAS warning against your name you will be able to see this on your credit file. If you are an innocent victim of fraud, CIFAS members must also send you a letter telling you that there is a CIFAS warning against your name.
A CIFAS Member is not allowed to refuse an application or cancel a service you are getting, such as an overdraft agreement, just because there is a warning on your credit reference file. They must make further enquiries to confirm your personal details before making a decision.
You can get tips and useful information from CIFAS on how to avoid identity theft and what to do if you are a victim of it.
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Mistake #: Transferring Credit Card Balances
Transferring a balance from one credit card to another is not a good credit repair tactic. You will still owe the same amount and in most cases, the balance transfer fees will outweigh whatever interest advantage you may get. The same applies to consolidating debt onto a single credit card, especially if you close the other cards, thereby losing any available credit they would show.
Mistake #: Not Keeping Documentation
Complete and accurate documentation regarding all debt is essential to disputing wrong information, protecting your rights, and keeping spending within parameters that make sense for you. You should know the penalties for missing a payment as well as the optimum conditions for requesting a credit increase. Be able to show payments were made on time and always be prepared to back up your claims with paperwork.
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Mistake #1: Missing Payments
Another credit repair mistake some people make happens when they miss payments on some accounts to make paymentsor larger paymentson others. The only exception might be if the account in question has either already been charged off or gone to collections. If choosing between paying a collection account and one that is current, always pay the current account to keep it that way.
Get Added As An Authorized User
Another way to help build credit is to be added to a trusted friend or relatives credit card account as an authorized user. If your friend uses their card responsibly like paying the bill on time and keeping the balance low you could get credit for their healthy credit habits.
But there could be a downside. If your friend doesnt use the credit card responsibly, any negative information reported on their credit reports for that account may also be reported on your credit reports.
Before entering into any agreements, check these things with the company that issues the credit card.
- Can you get off the account without needing your friends permission?
- Does the issuer report on authorized users to at least one of the three major credit reporting agencies?
- Does the issuer report positive and negative information to the bureaus for authorized users?
- What happens to your credit after leaving the account?
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Mistake #1: Canceling Credit Card Accounts
Since 35% of your credit score is based on your credit history, its seldom a good idea to close a credit account. It may be much better to keep a small balance and pay it off monthly instead of canceling the account or cutting up the card. It will take discipline to keep from going into debt, but your credit score will be higher for the effort.
Who Can Get My Credit Report
A current or prospective employer can get a copy of your credit report but only if you agree to it in writing. You might see companies and sites offering free credit reports, but there’s only one authorized place to get the free annual credit report you’re entitled to by law: AnnualCreditReport.com.
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Fraud Alert Frequently Asked Question
No. Federal law requires that the company that you contact to place your alert must tell the other two nationwide companies and, they, in turn, will place an alert on their versions of your report.
Innovis is not a nationwide credit reporting agency and must be notified separately.
Mistake #: Sending Uncertified Mail
Any paperwork you send to a credit agency, collection agency, or creditor, should be sent certified mail with the return receipt requested. This provides you with the documentation mentioned above as well as proof the agency received your letter. The same proof rule applies to any communication to you from any of the above entities. Do not verbally agree to anything unless it is also in writing. That way you will know what the agency has agreed to and, more importantly, will have written proof.
All communication should be in writing you shouldn’t verbally agree to anything unless it is also in writing.
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Have Your Rent Reported
If you rent a home, youre making a pretty big payment every month.
You can improve your credit with that positive rent history. Services like RentTrack will accept your rent payments and report them to the credit bureaus. These companies will typically add a fee about 1% to 3% of the rent amount which either you or the landlord will pay.
With their service reporting to all three major credit bureaus, RentTrack says they have seen credit scores increase 29 points in two months and 132 points in two years on average .
S To Correct Bad Credit
If you have a bad credit rating or if you find errors in the reports, you can take several steps to correct the situation. A guide from the Federal Trade Commission offers many tips. Below are the basic steps you can take.
Look for incorrect entries
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The debts listed should all belong to you. Incorrect items can come from identity theft, when someone else creates debt in your name. They can also come from debts belonging to an ex-spouse or mixed-up records.
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The payments youve made are correct. Its painful to face the mistakes you made. But you might find entries that say you didnt pay a bill when you actually did.
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The debts listed are timely. Debts more than 7 years old have to be removed from your credit report. Most bankruptcies stay on your credit report for 10 years.
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Do Debt Collectors Have To Prove You Owe
Debt collectors are legally required to send you a debt validation letter, which outlines what the debt is, how much you owe and other information. If you’re still uncertain about the debt you’re being asked to pay, you can send the debt collector a debt verification letter requesting more information.
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