Do you know your credit score not only dictates your financial future but plays a vital role in many other parts of your life?
Mortgage Lenders Look Credit Scores
Jason Flemish, VP of the Global Customer Care at Equifax said, “ Almost all lenders evaluate the applicant’s credit score to form a first impression of his or her financial situation. However, a good credit score does not mean that it is the standalone factor to determine when it comes to concluding an applicant’s credit decision. In addition to your credit score, there are many other factors too which are of equal importance such as, person’s past relationship and credit history with the company.
Once a lender approved your credit, they may regularly pull your credit score to determine if you are eligible for any special offers.
Employers, Landlords, And Utility Companies Also Determine Your Credit Score Or History
Not only lenders are interested in your creditworthiness, but landlords, employers, and utility companies may also want to see how well a person manages his or her finances.
Ken Perry, the partner of Perry and Aronson, New York City law firm, said, “In the U.S private housing market, there is no such requirement exist for a landlord to rent someone without checking his creditworthiness.” Depending on the state law, the same exists for utilities, and they may opt to refuse services to those who has a tarnished credit history.
An employment decision based on a person’s credit history is the most controversial talk of the town. Only 11 out of 50 U.S states have limited the employer’s power or ability to check the applicant’s payment history during their hiring process. Whereas, in other states, employer’s use applicants credit history to gauge his or character. Some of them are even reviewing credit reports.
Federal Law Offers Consumers Protection
The Fair Credit Reporting Act (FCRA) was passed by the U.S federal government to promote the fairness, accuracy, and privacy of consumer data secured in the database of consumer reporting agencies. The Act requires companies to obtain consumer authorization before pulling their credit score or credit report. If they intend to deny an application based on credit history, you will be informed of their decision and the reasons for refusal. Perry says, “Consumers have rights.”
The law requires consumers’ information to be complete, accurate, up-to-date and verifiable. Moreover, any inaccurate information must be corrected within thirty days.
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