Can a Company Do a Soft Credit Check without Permission

You may be wondering why you always stick to a credit card older than your firstborn, but before you finish it, it`s important to weigh the pros and cons. The Raleigh, North Carolina-based law firm Maginnis Howard explains in an online article that if you divorce, for example, it would be to your spouse`s advantage to learn more about your actual financial situation. You can hire a private investigator with contacts with companies that do not have adequate controls in place to ensure that a credit claim claim is legally initiated for a consumer. In some cases, a “soft draw” of your loan does not require your explicit permission. That`s why it`s important that you keep track of your credit reports and report any errors immediately. The FCRA sets out the “permitted purposes” for which a person or entity may access your credit report. A credit bureau should only provide a copy of your credit report in the following cases: The FCRA is responsible for all employees of the credit bureau who provide a copy of your credit report to unauthorized persons. The FCRA also holds accountable those who receive your credit report without an “authorized purpose”. 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.” However, not all requests are so harmless, and people might try to get your credit report through hooks or scammers.

The Fair Credit Reporting Act sets out what are the “eligible purposes” for someone to view your credit report. See Related Topics: Free Credit Reports – How to Get the Real Free Credit Report 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. 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. 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. Debt collection agencies that pursue a debt settled in the event of bankruptcy are also not allowed to recover your credit report. And insurance companies can`t access your credit report to determine your financial situation when reviewing a claim so they can negotiate it to their advantage. In addition, car dealers are known to bypass the law to check your credit.

The FCRA clearly states the situations in which a credit bureau should share your credit report with someone. These include: Stay up to date with the latest credit card news 一 from product reviews to credit tips 一 with our newsletter in your inbox twice a week. See related topics: Which credit reporting agencies use card issuers to check your credit? See Related: Example credit report – How to read a credit report Includes See Related: Difficult vs. Non-Urgent Applications: What They Are, How They Affect Your Credit, 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? 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. So how do you know someone has done an unauthorized review of your credit report? 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. The FCRA allows financial institutions to obtain such a pre-audited list from a credit reporting agency, unless you have expressly chosen not to participate in such pre-screened offers. 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. For this reason, the Fair Credit Reporting Act has established certain “eligible purposes” that describe the circumstances in which an individual may have access to your credit report. When you share a credit card with another person, it`s important to know if you`re a joint account holder, authorized user, or co-signer. It will determine the degree of control you have over the account and your responsibility for the balance. The content of this page is correct at the time of publication; However, some of our partner offers may have expired. Please check out our list of the best credit cards or use our CardMatch tool™ to find cards that suit your needs. 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. 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.

Even those who want access to your report can only request it if they have a legally authorized reason to do so. Your credit report is a sensitive document that should only have authorized access Given the type of entry in the report, not everyone should be able to use this information that they could use to their advantage to deal with you. Poonkulali Thangavelu is a senior journalist at It focuses on legislation and regulation and examines how public and private policies affect card users. She has extensive journalistic experience in the areas of personal finance and business and is happy to simplify these topics so that readers can make good decisions. Poonkulali is also the author of`s biweekly column “Fine Print”. B@D.