A permissible purpose is a legal reason, listed in the FCRA, that allows a company to get your credit or background report, such as a credit application you made, an account review, employment with your written consent, or a court order. Without one, no one may obtain your report.
Also called: permissible purpose FCRA, who can pull my credit report, unauthorized credit check, 15 U.S.C. 1681b
What it means
Your credit report is not public. Under 15 U.S.C. § 1681b, a consumer reporting agency may hand over a consumer report only for reasons the statute lists. Those reasons are called permissible purposes. The CFPB’s summary of FCRA rights puts it simply: access to your file is limited to people with a valid need, usually to consider an application with a creditor, insurer, employer, landlord, or other business.
The main permissible purposes
Section 1681b(a) lists them. The ones that matter most to consumers are:
- Credit. A company you applied to for credit, or one reviewing or collecting an account you have.
- Employment. But only after the employer gives you a stand-alone written disclosure and gets your written authorization (§ 1681b(b)(2)).
- Insurance underwriting.
- Government licenses or benefits that require a look at financial responsibility.
- Legitimate business need tied to a transaction you started, or a review of an existing account to confirm you still meet its terms.
- Your written instructions.
- A court order or certain subpoenas, and child support agencies.
Prescreened offers of credit or insurance are a separate, narrower path under § 1681b(c), and you can opt out of them.
Where it comes from
Users must identify themselves and certify their purpose before an agency gives them a report, and the agency may not furnish a report if it has reasonable grounds to believe it will not be used for a permissible purpose (§ 1681e(a)). Section 1681b(f) separately bars anyone from obtaining or using a report without a permissible purpose.
Common problems
- An inquiry from a company you never applied with and have no account with.
- A debt collector or lender pulling a report on an account that is not yours, often in a mixed file or identity theft situation.
- An ex-spouse, landlord, or employer pulling a report for a personal reason or without the required consent.
How to check and dispute it
Get your file disclosure. It must identify everyone who got your report in the past year (two years for employment). Ask the company in writing what purpose it certified. If the inquiry came from identity theft, dispute it with the bureau.
When it can be an FCRA violation
Obtaining or using a report without a permissible purpose violates § 1681b(f). Under § 1681n, a person who willfully fails to comply with the FCRA can be liable to the consumer, and § 1681n(a)(1)(B) adds a specific remedy against an individual who obtains a report under false pretenses or knowingly without a permissible purpose. Agencies that hand reports to users without proper procedures can also be responsible.
If a company pulled your report without a valid reason and won’t explain it, FCRA Attorneys offers a free case review, and you pay no fee unless we win.
Related
- Hard inquiry
- Soft inquiry
- Consumer reporting agency
- File disclosure
- Adverse action notice
- Can Someone Run a Background Check Without Your Consent?
- How to Remove Hard Inquiries From Your Credit Report, and Which Ones You Can't
- Do I have an FCRA case?
- Credit report lawsuits
Sources
- 15 U.S.C. § 1681b, permissible purposes of consumer reports (Cornell LII)
- 15 U.S.C. § 1681e, compliance procedures (Cornell LII)
- 15 U.S.C. § 1681n, civil liability for willful noncompliance (Cornell LII)
- CFPB, A Summary of Your Rights Under the Fair Credit Reporting Act
Updated November 2026. This glossary is written by FCRA Attorneys from public sources. It is general information, not legal advice, and is not affiliated with any credit bureau or industry association.