DEBT MANAGEMENT

We will delve more into credit scores, credit reports, and credit reporting agencies, but for now, it is important for you to be familiar with the words they use. A credit report is a veritable treasure trove of information about you and your money. That information is no one’s business but yours. And the government’s. And the credit card companies’. And banks. And the mortgage broker’s. And….

If you are wondering if anyone but the banks and lenders can look at your credit report, the answer is a definitive “yes”. Basically, the feds say it is okay for lots of people to be taking a peek at your credit report. They are only supposed to do so in order to make a determination regarding you and your creditworthiness. The usual suspects are: landlords, current and potential; employers, current and potential; insurance companies; child support enforcement agencies; government agencies (because they are the government); an identity theft monitoring company (obviously only if you hired them to do it); and of course, any potential lenders, And your mama. Wow, that is quite a list; and that last listed item is just to see if you were paying attention. Your private information has the ability to be seen by a lot of eyes, but your mother has no legal right to it, unless you give her written permission.

Every time some inquiries about your credit, it impacts your credit score. That is unless a soft inquiry is made – like by a credit card company targeting you for business. If the number of credit card offers that arrive in our mailboxes everyday are any indication, these kinds of soft inquires are happening very frequently!