Your credit report includes years of information about you and your financial habits. Many companies realize the value of this information and they pay the credit bureaus to be able to access this data. Here are some of the things your credit report is used for. Any company that pulls your report must have permissible purpose, but the law doesn’t exactly outline what’s considered a “permissible purpose.”

To send you promotional credit card offers

Unless you’ve opted-out of promotional offers, credit card companies will access your credit report and use the information to decide which promotional offers you qualify for. If you’ve ever wondered why you get so much credit card junk mail, that’s why. Here’s a tip, you can use these offers to gauge what creditors think of your credit standing. If you’re getting good offers, it’s a sign your credit is improving.

To locate you for debt collection purposes

Debt collection agencies use your credit report to figure out how they can collect a debt from you. Your report gives them access to your most recent contact and employment information. So even if you’ve moved around since you first created that debt, the collector will still find you.

Debt collectors even use your report information to bully you into paying the debt. If they see that you’re current on other payments, they’ll ask why can’t you pay them too.

To give you an insurance rate

Your credit report is used to generate an insurance score which insurance providers use to assign your insurance rate. Negative information on your credit report can result in a higher insurance premium, even if you have a spotless driving record. The reason is that insurance companies have found a correlation between credit history and claims filing.

To report your child support payment status

In some locales, child support enforcement agencies report your payment status to the credit bureaus. Some agencies only report arrearages and others report payment status whether you’re on time or not. If your child support enforcement agency reports your child support tradeline, everyone who pulls your credit report will know that you have this monthly obligation.

To screen you for employment or volunteer position

Some employers and even volunteer organizations use reports to as part of their background check. They use the information on your report sometimes to verify your identity and to make sure that you’re a good fit for the position. The employment report doesn’t include your credit score. The check won’t be a surprise since employers have to get your written permission before they can check your report.

To qualify you for credit cards and loans and to assign your interest rate

Of course, the most obvious way your credit report is used is when you put in an application for a credit card or loan. The bank will use your credit report to decide which product you qualify for and to assign your interest rate.

Fortunately, you also have the right to view your credit report, which gives you the chance to see if there’s any negative information that would keep you from getting the most favorable terms. Review your credit report at least once a year so you know where you stand.

This guest post was written by Steve Dowell, a professional writer specializing in topics related to personal finance, debt relief, credit repair and more. Pass through creditrepair.org for more tips and advice.