Why are all companies allowed access to your credit report? What can be done to limit access?

Question

In todays world it seems as long as you pose as a business you can access information on anyone you want. I know credit reporting agencies say that this doesn't affect your ratings, but it seems like it does. Any business can see your report and credit scores, but you can't see your own without paying. Why is that?

Answer 1

The only companies that should have access to your information are those that you have given permission to ( like applying for a card or a loan). Those inquires do cause you to lose points. The other types of companies that look are just getting very vague and general information and they do not get to see your personal information. They just get to verify your name and address and get told how many accounts you have in good standing. These types of checks do not cause you to lose points. One way to reduce the amount of checks like this is to join the " opt out program". You should be able to find more information about it on line. In this program it removes your name from several list that are sold to major companies that send you pre approval letters. Best of luck.

Answer 2

Okay, note these 2 things:

Soft Inquiry: This is when a company jumps to see your credit report which DOESN'T harm your score at all.

example: a company does a soft inquiry when you get a credit card packet in the mail saying you're "PRE-APPROVED"

Hard Inquiry: This is when a company jumps to see your credit on your approval. It does slightly harm your score! If you have multiples within a 30 day period, they will take away a small amount of your credit score. because...

example: this is when you go to a bank and want a loan...they look at your credit score on your approval to see if you have the money to pay for what you want to get a loan for.

If you have multiples of this example within a 30 day period...lets say your bank shopping for the best loan, they will take less score away from you.

Hope it helps!

Answer 3

They are paying too....

Answer 4

First, businesses don't have access to your credit file unless you give them permission.

Second, businesses pay to see your credit report; you get a copy for free every year.

Third, credit bureaus are in another business that screens pre-approved offers and mailing lists, without actually giving out your information.  You can contact th bureaus an opt out of these screenings.