Why Did Factual Data Pull My Credit Report?
Unsure why Factual Data appeared on your credit report? Understand their role, common inquiry reasons, and how to manage your credit information.
When an unfamiliar name like Factual Data appears on your credit report, it can cause concern. This often happens if you have recently applied for new credit. Factual Data operates as a consumer reporting agency, supplying credit information to businesses. Seeing their name on your report typically signifies that a lender or another entity has requested your credit data through their services to assess your creditworthiness.
Understanding Factual Data and Credit Inquiries
Factual Data is a credit reporting agency that provides credit reports and related services to businesses, primarily within the lending industry. They compile credit information from the three major consumer credit bureaus—Equifax, Experian, and TransUnion—into a single report for their clients. Factual Data acts as a conduit for data from these primary credit bureaus.
Credit inquiries are records on your credit report indicating who has accessed your credit information and when. These inquiries fall into two main categories: hard inquiries and soft inquiries. A hard inquiry, also known as a hard pull, occurs when you apply for new credit, such as a mortgage, auto loan, or credit card. These inquiries require your authorization and can cause a slight, temporary dip in your credit score, remaining on your report for up to two years.
Conversely, a soft inquiry, or soft pull, happens when your credit is checked for reasons unrelated to a new credit application. This can include checking your own credit, pre-qualifications for loans, or promotional offers from lenders. Soft inquiries do not affect your credit score and are often not visible to other lenders, though they may still appear on your personal credit report for up to two years. Factual Data primarily conducts hard inquiries on behalf of their clients for lending decisions.
Common Reasons for a Factual Data Credit Pull
The most frequent reason Factual Data appears on your credit report is an application for significant credit. Mortgage lenders widely use them to obtain detailed credit reports when individuals apply for a home loan or refinance an existing mortgage. This allows the mortgage company to evaluate your financial standing and repayment history.
Other financial institutions, such as auto lenders, also use Factual Data to pull your credit report during the loan application process. Factual Data acts as an intermediary, providing the requesting lender with the necessary credit data. The inquiry you see is on behalf of the specific institution considering your application.
While less common, Factual Data’s services can extend to other areas where credit history is relevant. Some landlords might use their services for tenant screening. They may also assist in employment or income verification, where a credit check forms part of a broader background assessment.
Investigating an Unrecognized Credit Pull
If you find an unrecognized Factual Data credit pull, first obtain a copy of your full credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can access these reports annually for free through AnnualCreditReport.com.
Once you have your credit reports, locate the Factual Data inquiry. The report should also list the name of the company that requested the report through Factual Data. This information helps identify the source of the inquiry. If the requesting company’s name is unfamiliar, review any recent applications for credit, loans, or services you may have made.
If you cannot identify the requesting company or if the inquiry seems unauthorized, contact Factual Data directly. They can provide the name of their client who accessed your credit report and the date of the inquiry. Understanding your rights under the Fair Credit Reporting Act (FCRA) is important, as this federal law regulates how consumer reporting agencies handle your credit information, promoting accuracy and privacy.
Protecting Your Credit Information
If a Factual Data inquiry was unauthorized or resulted from identity theft, you have rights under the Fair Credit Reporting Act (FCRA) to dispute the entry. Begin by contacting the company that made the inquiry to seek clarification or request its removal if it was an error. If the inquiry is fraudulent, report the identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov.
Next, dispute the unauthorized inquiry directly with each of the three major credit bureaus. Credit reporting agencies are required to investigate your dispute within 30 days and remove any information found to be inaccurate or unverifiable.
Consider placing a fraud alert on your credit file with one of the major credit bureaus. This bureau will then notify the other two, and the alert will remain for one year. A fraud alert signals to potential creditors that they should take extra steps to verify your identity before extending new credit, making it harder for identity thieves to open accounts in your name. For stronger protection, you can place a credit freeze with each of the three major credit bureaus individually. A credit freeze restricts access to your credit report, preventing most new credit accounts from being opened in your name without your explicit permission to temporarily lift the freeze.