Can a Lender Run Credit Without Your Consent?

When you apply for a credit card, service contract or car loan, the provider will typically run your credit report to determine if you are a good investment. In some cases, the provider will ask you to sign a release form that gives him permission to access your information. However, you may wonder if he could check your credit without your consent.

Fair Credit Reporting Act

Under the Fair Credit Reporting Act, companies can't typically request a copy of your credit report without your consent. However, you don't necessarily have to sign a release form. If you sign an application for credit, a loan or a service contract, you have given the company your implied consent to access your credit information. You also offer your implied consent to a credit check when you apply for a job.

Inquiries

Each time a company accesses your credit information, it counts as an inquiry. Inquiries can be hard or soft, depending on the type of information involved and the purpose of the check. Soft inquiries don't affect your credit score and won't remain on your report, whereas hard inquiries can lower your credit score and remain on your report for up to two years. Some soft inquiries, such as those that companies use to provide you with pre-approved offers, don't require your explicit or implied consent.

Medical Information

Though companies and employers don't always need a signed form to pull your credit, the Fair Credit Reporting Act prohibits them from accessing medical information on your credit report without your explicit consent. If the company is using the medical information for insurance purposes, they can access it as long as you have given consent, either verbally or in writing. However, for an employer or credit company to access medical information, you must sign a release that describes the manner in which the company will use the information.

Considerations

Though it is illegal for companies to pull your credit without your consent, you shouldn't provide your Social Security number to a company if you don't want them to make an inquiry. If you discover hard inquiries on your credit report that you didn't consent to, you can have them removed by contacting the company that checked your credit. If the company doesn't help you remove the inquiry, you can contact the credit bureaus in writing to explain the situation.