The FTC (Federal Trade Commission) action interrupted credit check scam. But, it is still questionable how you can protect yourself from similar schemes.
Here’s what you need to know about how the credit check scam works as part of the rental process. And also, how to avoid signing up for expensive add-ons when getting a free credit score.
Know What to Expect when Applying to Rent
Landlords may check your credit before they rent, but that typically comes after you have seen the unit and turned in an application. And the landlord can’t check your credit without your permission, which is usually included as part of the application.
Some landlords use unique tenant screening services which will have to be paid for by the applicant. When the landlord pulls a specialty tenant score, recognize that when reviewing your own credit, it might vary from the more general score that you see.
Things You Should Know About Free Credit Scores
Many “free” credit scores come with a catch. In some cases, you’re signing up for an ongoing service unless you cancel within a short window. Any request for a credit card number is your signal to read the fine print. Or, as in the Craigslist scam, the text is lighter and easy to miss.
Also, you’re entitled to a free annual credit report from each of the three major credit reporting agencies. Information in your credit reports is used to calculate your credit scores, so you’ll want to check your reports and correct errors if you find them.
How You Can Protect Yourself from Scams
Think twice when you’re asked for personal information. Legitimate services do need your Social Security number to retrieve your credit score, but a truly free score should not require a credit card number.
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