Online applications help expedite the process of qualifying for many types of credit accounts. Many businesses require a credit check along with your application. Be sure to review the website terms and conditions to ensure you understand your privacy rights. Allowing a creditor to pull your application online has pros and cons.
Terms and Conditions
Many online businesses offer a Terms of Use or Terms and Conditions link on their websites to disclose how personal information is managed on the site. The Terms and Conditions also state whether you are agreeing to a credit check by submitting your personal information on the website. In general, a privacy statement should also be included with this information. The privacy statement tells you what your rights are as a consumer to restrict information and explains whether a website will or won't share your contact details with third parties.
Completing the Application
Online applications request a variety of personal details. Some fields can remain blank while others are required in order to process your information effectively. For example, when completing an application for credit, your Social Security number is often requested if your credit score will be pulled. If your Social Security number is not requested, the creditor may have a second step in the approval process where your credit score is checked.
Affects of Inquiries
Online applications that pull your credit also cause your credit score to be reduced. Inquiries are not all viewed the same. Typically, if you are shopping for a mortgage, car loan, or education loan, your score drops only once during the time you are shopping for a loan. However, other types of credit, such as personal loans or credit cards, create a decline in credit with each inquiry.
Alternatives
If you are wary of having your credit pulled through an online application or want to avoid deductions in your credit score, there are several alternatives. You can usually call the creditor to complete an application by phone or send in a printed application. Consider requesting that the creditor allow you to pull your own credit score instead of letting the creditor pull your report. You can ensure your privacy is maintained and points are not deducted if you pull your score on your own.
0 comments:
Post a Comment