Who is looking at your credit score?
A credit score is one number that can affect several different aspects of your life. If you are unaware who looks at your credit score, you might be surprised where it being used. A credit score has many different applications besides granting you credit and here is short list of who is looking.
1. Credit Card Companies
This one might be the most obvious, but credit cards are looking at your credit score. They do to review your credit standing and access your risk. They will review your credit score when determining changes in interest rates. If you apply for new credit, your credit score will definitely be checked.
2. Mortgage Lenders
Your credit score is one of the most important factors in a mortgage application. Your FICO score is actually checked. Your FICO score is required because the American government sponsored entities of Freddie Mac and Fannie Mae required it as a standard. Also, FHA required a FICO score.
3. Insurance Companies
Your credit score is also looked at by your insurance companies. They have made a statistical relationship between your credit score and the risk you pose. This is sometimes is seen as a stretch and but it is the standard.
4. Cell Phone companies, Cable Companies, and Utilities
If you are setting service with any of these service-provides you will told your credit will be reviewed. They want to know if you are going to pay your bill or not. If you pose a credit risk they can ask for a security deposit before establishing service.
Who is not looking at your credit score
While there are many uses of your credit score, the score is not necessary for many decisions. An example of this is an employer background check requiring a credit check. Many jobs these days required a credit check before your hiring. If you grant them permission to check your credit, you are allowing the employer to look at your credit score not your credit score.
Wrap up to who is looking at your credit score
As you can see more than just credit card companies are looking at your credit score. These are just four different application of your credit score and there are definitely more. This makes this three digit score one of the most important numbers in your life.
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- Fico Score – Your Credit History and Applications Your credit history makes up 15% of your FICO score....
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Posted in Credit Score, FICO score
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