You know that you shouldn’t share certain sensitive information with strangers, right? This includes your social security number, bank information, and yes, in most cases, your credit report. However, there are times when sharing your credit report makes sense.
If you’re trying to apply for a loan, you’ll undoubtedly have to share credit information. But, you’ll also likely want to share it as part of a rental application process or even with your partner before moving in or getting married.
So, when does it make sense to share your credit report? Never on Facebook, that’s for sure. But, here are five reasons to share credit information as long as you do it in a safe manner that protects you from potential fraud and other attacks.
When Does it Make Sense to Share Your Credit Report?
1. Sharing Credit Information with a Lender
One of the most obvious reasons you would share your credit score or full credit report with a third party is when you’re applying for a loan. Mortgage lenders, auto loan lenders, and even credit card companies are some of the most common lenders you’d want and need to share credit information with.
Anybody who is considering granting you credit will absolutely want to see your credit history and assess your current credit score as a way of determining whether you’re a) eligible for more credit, and b) just how much credit your eligible for. In this sense, you’ll also want to ensure you’re working towards consistently improving your credit score, as a higher score makes you eligible for better credit cards and higher amounts of loans.
2. Sharing Credit Information with a Potential Employer
Aside from letting a lender access your credit report, a potential employer might also want to check your credit score and learn more about your credit history. What’s that got to do with snagging a sick job? A lot, actually. Your credit report shows that you’re not only financially responsible enough to manage your own finances (and therefore that of the company’s) but also that you’re not at risk of committing fraud or theft.
3. Sharing Credit Information with a Landlord
Similar to an employer credit check, a landlord credit check shows a rental company that you’re responsible with your money. And, similarly, these landlord credit checks that are completed as part of the tenant screening process only include essential information such as your credit score, rental history, criminal history, and eviction history.
Your landlord has to obtain written permission from you before accessing your full credit report. And, some landlords only require your credit score or even a credit range that will indicate to them that you’re a suitable tenant. It depends where you’re leasing, how much the rent is, and the company’s policy regarding screening checks.
4. Sharing Credit Information with an Insurance Company
If you’ve jumped through the financial hurdles of applying for an auto loan then you might still want to keep your credit score in mind for when it comes time to apply for car insurance. That’s right, car insurance companies can also check your credit score to determine your premium. But, you’ll want to know that they look at something called an insurance-based credit score, not your regular credit score.
An insurance-based credit score doesn’t use as many factors to determine your score. Really, they’re only looking at certain factors that demonstrate your ability to manage your risk exposure. But, it’s still important, and one of the reasons you’d want to share your credit information with a third party. In fact, approximately 95% of auto insurers use credit-based insurance scores as a risk classification factor.
5. Sharing Credit Information with a Partner
If you’re planning on moving in with your partner, purchasing a house as a couple, or are beginning to think about getting married and merging your finances, you’ll want to share your credit information with your partner for sure. Finances are a huge part of any long-term relationship and can affect quite a bit, especially if you’re applying for mortgage loans together.
It’s a good idea to talk about this aspect of your finances early on, well before you begin the process of applying for a loan. Find a way to constantly review each other’s credit scores and encourage each other to stay on top of them. Work together to improve your credit score over time so that when you both apply for the loan, there won’t be any surprises.
How to Easily Share Your Credit Score
Want to share your credit score with your partner? What about with your friends and family? You’ll want to do so in a way that’s safe and secure. And, that’s why we’ve created Float.
Float is a fun, easy-to-use app that not only provides you with your credit score for free but also allows you to lets you connect with friends and family to see theirs, too. You approve followers and decide how much they can see.
Don’t want them to see the actual score? Simply let them see an emoji version of your credit score. Want to give somebody more information? Approve them to see your full credit score (a great option for couples).
Get started today. Download the Float app and begin to unlock your financial potential.