It is legal for you to obtain a credit report on someone without their permission provided you have legally valid reasons to do so in compliance with the Fair Credit Reporting Act.
For example, you have a judgment against them for money owed or they currently have an open account with you. However, the major credit reporting agencies make it very difficult for someone other than the individual themselves to pull a credit report. This is for privacy and identity theft reasons.
Suitable qualified licensed mortgage brokers, banks etc are set up to legally pull credit reports themselves.
If you turn someone down based on their credit they are entitled to know why and get the name of the credit reporting agency.
Credit reports often have errors. Especially if your name is a common one. Successive governments have attempted to regulate these companies that can so greatly affect your life, without much success due to the power of their Washington lobbyists.
You are legally entitled to one FREE copy of your credit report every year. Do not be fooled by those companies that offer you a free credit report but only if you sign up for regular credit reports at a substantial monthly cost. While they offer you a right to cancel, many people forget to do this. Click here for your TRULY free credit report with no strings attached.
Understand Credit Report
- Sample credit report with an explanation of how to read it (pdf)
- Explanation of what all the codes mean (pdf)
Factors Affecting Credit Score
Defend Your Rights, Credit Repair
Legally Obtain a Credit Report
- Legally obtain a Credit Report
- YOUR legal obligations Complying with FCRA
- Full text of the Fair Credit Reporting Act (pdf)
