OnPath Credit Union

Yes – and not just banks. Anyone who can order a credit report on you can see how much debt you owe and to whom. However, not just anyone can order a credit report on you. According to the Fair Credit Reporting Act (FCRA), only certain people, businesses, government agencies or organizations can order credit reports on individuals, and only under a strict set of circumstances.

Parties with a “permissible purpose” to order a credit report include:

• Any lender can legally request and obtain your credit report when you apply for any kind of credit, whether it’s a mortgage, credit card, auto loan or any other type of borrowing.
• Companies can perform a credit check on prospective new hires if the person applying for the job provides written consent that gives the business permission to do so. However, if a job does require a credit check and you refuse to consent, the job offer will likely be rescinded.
• Insurance companies have permission to perform credit checks on current or prospective customers for underwriting purposes. Your credit score can have significant implications for your perceived risk as a policyholder and the results may influence your premiums.
• The government can legally pull your credit report for multiple reasons. Certain types of government-issued licenses require credit checks. They may also pull credit reports for means testing an applicant’s eligibility for certain government benefits.
• Courts can subpoena credit reporting agencies to compel them to release your report to another party if the circumstances justify doing so.
• Landlords or any business with a “legitimate” need can request credit reports during the tenant or client screening process. However, these types of credit checks should also require your consent.
• You always have permission to order your own credit report. You are entitled to one free report from each agency per year (Equifax, Experian and TransUnion), but you can pay to receive extra credit reports if you need them.

Can You Hide From Debt?

Given the accessibility of credit reports in the above circumstances, the answer is typically no. However, access to your credit history is situational. Friends, family members, nosy coworkers or acquaintances typically can’t go behind your back and order one thanks to the FCRA. If you suspect someone has illegally accessed your credit report, you should report the situation to the Consumer Financial Protection Bureau for investigation and legal action.

What If I Just Owe Overdrafting Charges, Non-Sufficient Funds Fees or an Unpaid Negative Account Balance?

Although these aren’t loans in the traditional sense, any bank or financial institution will check your banking history against one of the third-party reporting agencies that track it, like ChexSystems, Early Warning Services and TeleCheck.

Banks and credit unions report specific types of behaviors to these companies so people can’t commit fraud or irresponsibly use their accounts and simply go to a new bank with a clean slate. The report will include things like overdrafting, NSF transactions and unpaid negative account balances, as well as other activities like suspected fraud or bounced checks.

In other words, any bank or credit union you seek to use for a loan or even to open a new account will be apprised of these types of outstanding fees or past behaviors at other financial institutions. 

Will My Past Account History or Debt Haunt Me Forever?

No – you can take steps to repair your credit and your banking history. There are a number of ways borrowers can repair their credit, such as qualifying for an unsecured credit card or smaller loans and making payments in full and on time. The downside is this process can take many years.

Repairing your bank history, at least at OnPath Federal Credit Union, doesn’t take nearly as long thanks to our second chance Rise Checking account.

If you enroll in Rise Checking and maintain good standing for 12 months, you may be able to transition into a traditional checking account and benefit from all the account features they offer. Rise Checking offers a fast and convenient way to repair your history and move on with your financial life. Learn more about our checking account options or how to become a member by calling 800.749.6193.