Sneaky Peeks

Reputable lenders or loan brokers will ask you sign a document that gives them formal permission to pull your credit as part of a loan application process. If you sign such document, make sure that it states clearly who has permission.

Don’t sign any document that gives a broker or potential lender open-ended permission to look. Most brokers should be able to pull one report and share their copy with potential lender; if your broker insists that he or she has to let different lenders pull your credit, only agree to give permission separately to each lender as they request.

Some potential lenders who don’t yet have a permissible purpose to pull your credit report may try tricks to get your permission without your understanding. Some will include slick language in their promotional brochures that states any response from you will constitute permission to pull your credit.

Again, your best protection in these cases is to withhold your Social Security number until you know more about the offer. And, again, this can make things difficult—especially for on-line credit applications. But the point is to withhold key information until you’ve signed a formal document giving permission to pull your credit. This will limit your exposure to surprises and abuse.

Telemarketers and on-line lenders can be especially slick about getting your permission. A telemarketer selling a credit card might say something about “getting you an approval right here on the phone, if you’d like that” and take your agreement as permission. Likewise, on-line lenders may offer “instant approval” if you “confirm” information or check a box.

Be wary of either pitch. The safest course for you is to put everything in writing—so, state clearly to the telemarketer that you’re not going to give approval for anything unless it’s in writing. And ask any on-line lender to contact you by telephone or e-mail to arrange a written permission.

Next: Conclusion