Credit Checks

There’s a lot of talk (and commercials) about consumer credit scores. “What’s my score?” has become a common thought of consumers, brought to the forefront by tightening credit amounts and availability.

Besides knowing how to pull your own credit reports or credit score and what makes up that magic number (download our 2011 Financial Planning Guide to learn more), you need to know who will view, evaluate, and rely on your credit information to make important decisions. And it’s not just lenders anymore.

Credit checking has gone beyond credit and lending to include other industries such as insurance companies, landlords, and even employers.

Insurance companies might review your score as part of their underwriting process to determine premium rates on auto and home insurance. Lower scores could mean higher rates. You can ask your agent at the time of application if your credit is an underwriting factor.

Landlords, just like lenders, rely on a tenant to pay in full and on time. A credit report is a good indicator to the landlord of a tenant’s capability to do so.

Employers may review the credit report of a potential employee as a sign of responsibility, or lack thereof. In certain industries (such as investment brokers), a credit check is mandatory before employment.

For more financial help and advice download the 2011 Kentucky Living Financial Planning Guide.