Debt Consolidation Counseling: Who Checks Your Credit Score?
When you visit a debt settlement company to receive debt consolidation counseling, they will want to pull up your credit history and view your credit report. This begs the question, Who can check my credit score? It should come as no surprise that many organizations besides those that you visit to receive debt consolidation counseling have access to your credit score. The potential impact your credit score can have on your life is astounding. For instance, if you were interviewing for a job, then you need to consider that your potential employer ran a background and credit history report on you. As shocking as that may seem, it is not a rare occurrence.
Creditors have used credit scores for many years to determine how risky a potential borrower could be to their company. If you have a low credit score, then your opportunity to receive a loan was greatly reduced. Credit scores directly impact your ability to get a mortgage, loan for personal or business use, or credit cards. If you own your own business, then you might be surprised to learn that potential business partners or business clients perform a credit history search on you. The main idea behind this practice is to eliminate as much risk as possible from any business transactions.
The use of the credit score has grown each year because it allows for businesses to have an objective way to measure the credit risk of some of their potential clients. Typically, the higher the credit score, the more likely a person is to repay their financial obligations. This means less total risk for the business. Conversely, if you have a low credit score, then you will be viewed as someone who has a high risk of default, so lenders will be more wary of doing business with you.