When you need a car loan or a credit card, most companies will want to check your credit report. If you’ve made some mistakes and have bad debt, it can be hard to get more loans for many years. But what about all the other companies that look at it?
Surprisingly, there are quite a few of them out there. Credit bureaus know everything about your borrowing history and sell this information to businesses such as banks, store cards, and payday lenders. These businesses then use the date in deciding whether they should offer you finance on their products. Here are companies that look at your credit report:
Real Estate Agents
When you’re buying a home, your lender will send your credit report to your real estate agent. This helps the realtor decide if you should be given a house in that area and which property best suits you.
Cell Phone Companies
Bad debt affects everyone, but there are still many cell phone providers there who want customers with less than perfect credit. The major difference is that they charge higher fees for the service or have shorter contracts to compensate. You could also get charged an early termination fee if you leave before the contract ends, so make sure this won’t happen before you sign up.
Insurance companies sometimes ask to see your credit report too when deciding how much they’re willing to offer you for insurance. Policies like home insurance or car insurance are usually more expensive if you have bad debt because there’s more risk that something could happen.
When you rent a flat, the landlord might look at your credit report to ensure you won’t run out on the rent or do anything else they don’t approve of. If your credit score isn’t good enough, it will be difficult to find an apartment unless they charge extra fees for this kind of thing.
According to the Federal Trade Commission, some companies check job applicants’ credit reports when making hiring decisions. It’s particularly common in financial fields, but major employers like Google also use them when looking for people to fill positions.
Telephone companies, gas, and electric providers might ask to see your credit report if you want new services or an extension of an existing contract. This is because they need to be sure that they will pay the bills before providing the service.
Some big stores check your credit report when you apply for a store card with them. Why? Because their marketing department has done their job right and marketed the card as a great way to save money on their products, then there’s a higher chance that you’ll miss those payments and cause problems for them too. If you don’t want this kind of card, look for cards that do not require credit checks.
Each of the above companies will check your credit report to assess whether you are financially responsible. If they find that you have poor credit, they may reject your application to limit their financial liability. On the other hand, if your credit is excellent, they may offer you payment terms that result in higher prices for their product or service.