Need a loan? Want to apply for a credit card? Or thinking about getting a new car financed? It’s no surprise that any lender or business that gives you a line of credit is going to check out your credit report first.
But here’s the rub. Your credit score goes beyond loan approval. It can affect other areas of life. For that reason, it’s a good idea to make sure that your credit score is as high as you can get it.
For example, let’s say that you had a rough spell that damaged your credit. You’re trying to get a job to clean things up. Unfortunately, you might find yourself between the proverbial rock and hard spot because your credit score might affect your ability to get a job. Many potential employers review your credit report to determine if you are a responsible person and how you handle money.
If you are looking at a home or apartment to rent, the landlord might evaluate your credit report to decide whether you will be a responsible tenant. Because the score theoretically reflects your ability to make monthly payments, the landlord might decline your rental application if he or she thinks that you will be unlikely to pay your monthly lease.
Your ability to obtain home, renters, health or other types of insurance might also be affected by your credit report, depending on the policies of the underwriter. More underwriters these days are checking out credit reports before accepting insurance applications.
Who Is Allowed to Look At Credit Reports?
In most cases, under the Fair Credit Reporting Act (FCRA), you must first grant permission to landlords and businesses who want to review your report. There are exceptions, however. A common exception is that your current creditors can review your report periodically without asking for your consent. Generally, businesses, lenders, government agencies and others can review your credit profile without asking you if their review is for what is called permissible purposes.
These permissible purposes in which your credit report can be supplied are defined under FCRA. Not always with your consent, a credit report may be supplied if:
… the report is used for credit granting considerations;
… the credit report is used for the review or collection of an account;
… the report will be used for employment considerations;
… the credit report is used for insurance underwriting;
… an application for a government license has been made;
… the credit report will be used in response to a court order;
… you have provided written permission for a business to review your report;
… the credit report is used for FBI counterintelligence investigations.
You might receive a lot of pre-approved credit card offers in which the potential lender has already reviewed your report without your knowledge and pre-approved it. These types of reviews would fall under the credit granting considerations and would be considered a permissible use of your credit report.
Most inquiries about your credit score will stay on your report for up to two years, and may adversely impact your score. However, like most of the reviews that you did not specifically authorize, the inquiries from lenders who want to offer you pre-approved credit do not appear on your report and will not adversely affect your score.
Unless a person or entity is reviewing your credit report for a permissible use, they should not have access to your credit file. Anyone who knowingly and willfully obtains a credit report under false pretenses may be fined under Title 18 of the United States Code and imprisoned up to two years. If you see any suspicious activity about who is reviewing your credit report, be sure to contact the credit bureaus immediately.
Urbain Beck
http://www.articlesbase.com/non-fiction-articles/you-might-be-surprised-at-who-reviews-credit-reports-53422.html
What kind of violation is this.?
Hi I have a simple but little tricky question.
I believe there are three ways to purchase a house.
1.Pay cash – If you are a millionaire..
2.Hire Mortgage Broker – They will contact with Wholesale Lender
3.Contact with Bank directly – Bank has it’s own Loan Officer.
*If someone doesn’t tell the difference between mortgage broker and loan officer, go to yahoo and search "mortgage broker vs. loan officer" .
Here is my story.
Year 2004 I met Mr.Kim who was a mortgage broker.He always tell others that if someone wants to buy a house, they have to hire a mortgage broker to process their loan(He was acting that option #3 does not exist. That way he could get more jobs to sell.). *Someone might say "Why did you trust the mortgage broker? You are stupid…" You will be surprised to know how so many people have no knowledge about these whatsoever.
Anyway I trusted him and year 2005 I purchased my first house.
I filled out loan application and prepared all the documents which was prepared by Mr.Kim. The loan was approved: both first and second lender was major Banks. Exactly 2months later, I received a check book by XX (also major bank) bank. I asked my mortgage broker about this and he said that this was a home equity line of credit by XX bank (3rd mortgage): it was issued based on the current value of my property (there’s no loan application and no appraisal report..ect.) and my excellent credit. I had no doubt about this at that time (because it was issued from a major bank) and I used the money for home improvement. My mortgage broker, Kim was sentenced for financial fraud for other cases(currently he is in federal prison)
In the mean time, my mortgage payment was increased dramatically because it was a MTA program which I had no idea what that was at that time… My monthly payment doubled after 2 years and I had reached a point where I could not make all three mortgage payment including the 3rd mortgage. As the real estate market crashed, the value of my house dropped greatly and I could no longer able to make payment. I knew something was not right. I heard about Mortgage Audit from internet one day and decided to do that. I requested all the documents (including original loan applications..) from the all three lenders.
I was surprised to see that there were loan officer’s name which I had no idea because I had never met any loan officers. Not only that but also the information on the loan application had wrong information which was prepared by mortgage broker?? or the loan officer??
Since the lender was not a whole sale lender, I had learned that the loan officer from the lender must meet with the borrower directly(Patriot Act?).
What do you think about this whole loan process? I want to know how big crime it is when the loan officer never contacted the borrower and accept all the documents from the mortgage broker and approve the loan despite of all the wrong information on the loan documents??
* Some of you might say, "You signed the documents at the settlement and it is your responsibility"
However both the mortgage broker and the title agent are currently imprisoned. During the settlement, it is almost impossible to review every single document and sign them. I had to trust whatever I sign because it was conducted by title lawyer. Who would not trust "LAWYER" ?? DO YOU THINK LENDER GAVE US A MONEY BECAUSE THEY ARE CHARITY WORKERS?
Your question gave me a headache.
I would suggest strongly that you contact an attorney that specializes in real estate.
To me it sounds like you may have a case based on fraud, simply on the basis that your broker seemed to have filled out and filed papers on your behalf with out your approval.
Good luck.
References :
15 years as a Public Safety Officer