Pulling Your Credit Report

Q: My job is in the credit field, and I look at people's credit reports (or a summary thereof) every day, but still, I was trained with the knowledge I need to do my job, and not more. In this case, I want more, and I'm sure someone on AFCA would know. Why are some people so deathly afraid to have their credit report pulled? Does it lower your Fair Isaac, Beacon, or any other credit-scoring method so very much if an additional credit report is pulled? Working bank cards, I've had people ask me for credit-line increases, then withdraw their requests when they learn it will involve a credit check. Working student loans, I've had people beg me for a way to apply for our private loans (which are credit-based, fer chrissake) without pulling a credit report. What is the fear factor here? Is it an irrational fear based on emotion, like people's fear of flying right after the 2001 terrorist attacks was, or is it something with more substance?

A: People don't like the idea that there's a record of them that's getting consulted: makes them feel like they're at a disadvantage, perhaps? Like so many comlex situations it probably revovles around several factors. The FICO score is a real issue for some since if a lot of entities start pulling your report it can have a reasonable effect. It's been my experience that most people do not really understand how the scoring works so paranoia can have a big effect. Fear of the unknown. So much of personal credit is nebulous to the vast majority. Privacy fears are also pretty invasive from a personal comfort standpoint. If you've seen you report it often

looks like a complete window into your personal life. These are my own personal thoughts although several years ago I did some research for my masters thesis on electronic privacy so I did some delving into this area. Most people have a pretty deap fear and misunderstanding. An interesting aside that I found was that while most people where leary of allowing personal information to be accessed they wouldn't hesitate if there was either a percieved benifit or that the effort to secure personal information was deemed too high. Basicaly even if they had a good assessment of risks they would bypass protective measures if they were deemed to be time consuming or involve too much effort. .