The score is an effort to quantify your projected reliability in paying back car loans, credit card balances, mortgages and other lines of credit.The most widely used credit score is the FICO score, created by the Fair Isaac Corporation in 1989.The employer must make the employee aware that information on the credit report is being used to evaluate them.If the employee refuses to permit the employer to pull a credit report, the employer may deny them the job. These credit reports are used by banks, card companies and other lenders to assess the quality of a person’s credit worthiness and help determine whether to grant them a loan. They provide a service to banks, lenders and individuals who pay them fees. – Experian, Equifax and Trans Union – that collect and maintain financial information on consumers to help develop reports about the person’s spending and payment habits.Credit bureaus also calculate your credit scorewhich affects many aspects of your life.A credit score is the result of a mathematical formula based upon the contents of your credit report.
However, they are explicitly allowed under the FCRA, which allows this because of the tangible benefit (firm offer of credit) that consumers receive.The credit card industry obviously has the most interest in your credit report because it supplies a temporary loan each time you use one of its cards.Other obvious businesses interested in your score — and thus your ability to repay loans — would include mortgage brokers, auto dealerships and banks.“Hard pulls” are considered voluntary inquiries, which is when you apply for a credit card, a mortgage or an auto loan.Unauthorized hard pulls by a business can negatively impact your credit score, but you can ask the business or credit bureaus to remove it because the inquiries were made without your consent.The FICO score is a three-digit number that ranges from 300 to 850.