There is a process that is known as credit rating sharing. This when various entities share your credit rating information with other companies, most of which aren’t even offering the consumer credit. This could include utility companies, cable and satellite companies, insurance companies, phone companies and even landlords. It is a good thing for you to know that the more times your credit report is being pulled, the lower your credit score becomes. These companies don’t usually have to pay to view your credit report and they use the information that they find to help them decide on whether or not to offer you their services. Those that have the lowest credit ratings are given high rates than those who have a better credit score.
When it comes to obtaining insurance, there are laws that state that the insurer has to base their decision based on causation. This term has to do with the statistical relationship between two proven factors. Such a situation would be an individual being involved in multiple car accidents. The statistics show that this same individual could possibly be involved in more car accidents, so the insurance company can raise their rates to protect their company. Having late payments on credit cards or other bills will have no effect whatsoever on your approval for insurance.
It is a good idea that you keep an eye on your credit score and on who has been looking at your credit report. The fact that credit rating sharing is taking place does mean more people are looking in at your credit report, so protect yourself by knowing who has had access. Make sure no unauthorized peaks or transactions have taken place with your credit. If you are declined for a loan or from another company offering a service because of your credit rating, you have the right to know why it was declined. The business is supposed to show you the portion of your credit report that caused them to make the decision that they made, so make sure to ask about this if you are ever declined for anything based on your credit score.
You are entitled to one free credit report annually, so use that privilege wisely to ensure your credit score is what you expect it to be. You can also purchase access to your credit report online for a monthly or one time fee. You will have access to credit rating sharing files from TransUnion, Experian and Equifax. With them, you will be able to see everything that has been reported with your social security number, such as your late rent, credit card, mortgage, car note or other reports that have been made. Whenever you give your social security number to an entity you are about to do business with, they will report negative activities on your credit report. Only those offering credit will give good reports that will raise your credit rating. With this access to your credit report, you will be able to see who has been utilizing their credit rating sharing rights with your credit report.
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