What Are Credit Reports Used For?
Credit report is to help a credit grantor decide whether to grant you credit based on your credit payment history. The Fair Credit Reporting Act allows credit bureaus to sell your report only for certain uses. • Organizations who decide whether or not to accept your application for credit, determine your interest rate, or review or collect on your account. • Potential employers who decide whether or not to hire you. (Note: Reports cannot be provided for this purpose without your written consent.) • Insurance company that determine the cost of your policy or the amount of coverage for which you are eligible. (Note: A number of states have passed or are considering passing laws that forbid this use of your credit report.) • Government agencies that determine your eligibility for a license, where a consideration of your financial status is required by law. • Potential creditors who determine whether or not you are a good credit risk (for example, some lenders will check your credit report
