Credit Inquiries: Watching People Who Are Watching Your Credit Report Part 2
written by Credit-HQ ExpertWhile many of the entries on your credit report are not going to hurt your credit, there are impacts to how you relate to a business that could be explained when you do the detective work to find out who is watching you in regards to your credit. For example, if you notice that the credit card company you already are in business with has been checking your credit history and you also have noticed your interest rates going up, those two events are related. If a credit card carrier begins to get concerned about your ability to pay your bill, they will often raise your interest rate as a result.
Similarly, the company or individual who you pay the rent to may have checked your credit score and they may check it from time to time even if you are a good customer and you pay your bills on time. If your landlord notices that your credit score has begun to get worse, he might begin to get concerned about whether you will be able to continue to pay your bills long term. But if you have a good history of making your payments, that should not be a problem. Pay attention if your credit report is drawing the attention of property managers particularly if you want to sign a lease on a new apartment. If your credit score is questionable, that may affect your ability to rent that perfect apartment or house.
Utility companies and other businesses that you pay regular bills to will often check your credit score before setting up your account. While you probably will not be denied service just because your credit score is low or falling, it could cause businesses that you need for your daily essentials to feel they need to charge you a higher deposit for their services or even charge higher rates because you represent a risk. The same is true of cell phone providers because that contract you sign with them for several years of service is something you have to pay each month. They want to know that you can pay your bills.
You could even find that a prospective employer wants to check your credit history before making you an offer for that new job you want. This is most likely to happen if the job you are going to take involves managing money for the company. But employers also want to know you are handling your life in a responsible fashion so they know you will handle your job with them just as well.
In most of these situations, you have to give your permission for a future employer, landlord or a utility company to check your credit. And since you gave your permission, when you see that business how up on your credit report, that should not be a big shock. It should also not be a cause for concern because none of these inquires drive down your credit score. Only new credit applications can do that and you have control over that by simply being very conservative in the amount of credit you apply for. By using good sense in how you handle your credit, even though you know people are watching you, you can relax because you have nothing to hide.
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