Credit report is to help a credit grantor decide whether to grant you credit based on your credit payment history. The Fair Credit Reporting Act allows credit bureaus to sell your report only for certain uses.

• Organizations who decide whether or not to accept your application for credit, determine your interest rate, or review or collect on your account.
• Potential employers who decide whether or not to hire you. (Note: Reports cannot be provided for this purpose without your written consent.)
• Insurance company that determine the cost of your policy or the amount of coverage for which you are eligible. (Note: A number of states have passed or are considering passing laws that forbid this use of your credit report.)
• Government agencies that determine your eligibility for a license, where a consideration of your financial status is required by law.
• Potential creditors who determine whether or not you are a good credit risk (for example, some lenders will check your credit report to decide whether to send you a loan or credit card solicitation, even if you are not already a customer).
• Current creditors who re-assess your status (for example, your bank could close your already existing line of credit because of new information on your credit report). Often, instead of purchasing your credit report for these purposes, a current or potential creditor will purchase your credit score. Your credit score is determined by a formula based on the information in your credit report.

If a lender finds what it considers excessive inquiries, it may reject your credit application. Lenders are free to determine their own guidelines for what constitutes excessive inquiries. Don't give out your credit information unless you are ready to apply for credit. If you have too many inquiries and not resulting credit, it's considered a bad sign by creditors.