Credit Card Issuers Can Check Your Credit

Many credit card customers do not understand just how vital their credit report is to their good financial health. The information in your credit report and your credit score can affect your credit at any time, not only when new credit is approved or new credit cards are issued. These days credit card issuers routinely check the credit scores of their current cardholders, and a negative event, like a late payment, on one card can cause the interest rates to be hiked on all your cards, regardless of the issuing bank.

The fact is that credit card issuers have the right to examine the information in your credit report, and the authorization for them to do so is buried in the fine print of the credit card agreement. If the credit card issuer sees a history of late payments, even on another credit card, they have the right to increase your interest rate or change your payment terms.

The credit card companies use the information they gain from examining credit reports in order to determine the risk factors of their customers, and to adjust their credit terms as they see fit.

It used to be quite difficult for credit card companies to check credit reports, and at that time they did so only when new credit cards were issued, or when the customer requested a credit line increase. These days, however, the internet and other new technology makes checking credit reports a snap, and that means that more and more credit card issuers are initiating these routine credit checks on existing customers. It is important to prepare for those frequent checks by always paying all bills on time, and by checking your own credit report for errors at least once a year.



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