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Lenders may ask for IRS data to mitigate risk
By Sam Craine on Jun 7th, 2010
Handling credit card debt and loans should lead to a better credit score, which can help consumers when trying to qualify for financial products.
This may be especially important information to consider as lenders have gotten more careful about to whom they grant credit. In a recent piece for her website, financial expert Liz Pulliam Weston featured a note from a reader who had their lender request Internal Revenue Service records to continue having a home equity line of credit.
The reader did not want to do this, especially since they had paid their bills on time. As a result, the financial firm froze their account.
"You may feel your current lender’s demand is invasive, since you’ve handled the line of credit responsibly in the past. But high default and foreclosure rates have lenders spooked," Pulliam Weston wrote.
To gain access to that line of credit, Pulliam Weston said the reader would have to comply with the lender's request.
Consumers who are having a hard time with things like home loans or credit card debt may consider consumer credit counseling, which can help by analyzing expenses and incomes. Doing so could make sure people pay their bills on time, which will improve their credit score.
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