Credit Check

What Happens When a Credit Check is Performed on You

A credit check is a very common procedure that is performed probably more than you know. Some of the most common reasons for credit checks include: application for a credit card or banking account and application for an apartment lease. When a company or organization does a credit check on you, they will receive a credit score. The credit score is a number that determines your projected liability risk. If you have a low credit score, or example, you run a high risk of not paying back the money that a company may lend you. Here are some things that you should know about a credit check before you have one done.

You Must Give Consent

Before an organization or individual runs a credit check on you, you must give consent. When you give consent, you are essentially handing over the keys to the organization so that you can see what they come up with in regards to your purchasing and credit history. You are also accepting that you could be judged based on the results of your credit check.

You Receive One Free Credit Check

In most cases, if you want to check on your own credit, you have to pay. However, you are entitled to one free credit check per annum. If you get turned down for credit by any company, you are also entitled to find out why. You may request the results to the credit check and they must be turned over. It is a good idea to check your credit every so often because sometimes the credit check will come back with a negative mark that you are not responsible for. This negative mark could be the result of identity theft, which you need to be aware of.

You Will Have to Provide Personal Information

When you go through a credit check, you will have to provide personal information to the individual or organization that is checking your credit. This personal information includes your most recent mailing address, current address, date of birth, social security number and may also include your mother's maiden name and other protected information. Be careful about you you give this information over to and how often you do it. Many illegitimate companies will retain this information after they perform a quick credit check. They will then sell this information on.

Beware of Scams

Just like you have to be careful who you give your personal information to, you have to be careful about getting involved in scams. There are many scans out there that will take your personal information and sell it. Be careful about who you give this information to and in most cases, it is a bad idea to give information out online.

Credit checks are common procedures that help organizations determine the risk that they are taking on when getting involved with you. If you are having a credit check performed, make sure that the company that is doing the check is legitimate and will not sell or give your information away. In this day and age or identity theft, you need to be extra cautious especially when you are offering sensitive information like with a credit check.