Who has been looking at your credit score?

Aug 19 2011

Everyone understands the importance of keeping their personal information private these days, and none of us wants to fall victim to identity theft or credit card fraud. You would imagine that the detailed information that underpins your personal credit score would be among the most carefully protected of all personal information, and indeed it is. But it is also available to many more people than you might immediately think, and your credit score can have an adverse impact well beyond your need to borrow money from time to time.

You probably realise that banks, credit card companies, and other organisations that offer finance and loans, will be able to see your credit score. They need to understand your financial circumstances in order to check they will be safe making you the loan that you want.

Why is my credit score of interest to potential employers?

Employers can afford to be picky these days, and increasingly, are looking at the ‘whole life’ profile of candidates for employment, rather than just their immediate technical skills and their ability to do the job. Employers may check your credit score, and read your credit report to find out more about you. They will be interested in questions such as: Are you in debt? Do you have outstanding court judgments or fines against you? Are you involved in a serious financial dispute? Do you handle your finances well?

A poor credit rating can trigger a deeper investigation, and the messy details of our financial lives can sometimes count against us, especially in the competitive and unforgiving job market.

Why is my landlord so interested in my credit score?

It used to be the case that if you could come up with a month’s deposit and the first month’s rent, and that you confirmed you had a job, almost every landlord would be pleased to see you. They are more cautious these days, probably as a direct consequence of the number of chancers, dodgers and defaulters they’ve experienced in the past. Checking your credit score is one way that landlords seek to protect themselves from bad debt or worse.

If a potential landlord sees that you have significant outstanding debts, that you are an irregular payer of your bills, or are involved in a series of disputes, they are less likely to rent you the property than someone whose record shows a good credit score and payment history.

What’s obvious from the wide range of people who are interested in your credit score, is that it’s an important measure. Before you experience a refusal from any source, it’s a good idea to find out what your credit score is, and to check that it’s based on a full and accurate set of facts about you. Correct any errors and fill in any gaps, to achieve the most fitting credit score and to obtain the best outcomes whoever checks your file.