It is true that more and more companies than you are aware of are viewing your credit profile. Nearly all of the companies you do business with share information with their sister companies and companies they may have a loose affiliation with.
What happened to your rights and protections?
This is what that little, hard to understand, the print is too small privacy statement is about that you receive each year as required by law. And it is important to review this and take advantage of the opt out option that is provided if you do not want your personal and private information shared with other companies who will then review your credit report. By not opting out you have given your permission to have your personal information shared.
The credit bureaus believe that because they gather this information they have the right to sell it to others who may find your credit profile just the target market they are looking for. And they do just that, everyone from debt collectors, to credit card companies, to chain stores, to insurance companies and on and on can pay to get access to at least part of your credit profile. Sometimes it is just a credit score, other times it is a lot more.
So how do all of these companies looking at your credit impact your credit score?
Each time your credit profile is accessed, the credit scoring calculation factors in a possible extension of credit. Get too many of these and your credit score will drop. A lender viewing a good number of inquiries on your credit might think you are actually applying for additional credit.
These are the actions to take to raise your credit scores…
I would say the very first thing is to review the privacy statements of the companies you do business with. They are required to give you the chance to opt out of sharing your information (Congress just couldn’t bring themselves to pass legislation forcing these companies to ask you to “opt-in”). Opt out