From a compliance perspective, there isn’t anything that specifically prohibits a financial institution from re-using an existing credit report for a subsequent credit request (or other purpose). In fact, it’s a pretty common practice and many institutions actually dictate in their loan policy how old a credit report can be to reuse it. When we recommend not reusing credit reports under any circumstances, we often get pushback. Our reasoning is simple; however. Reusing credit reports can negatively impact the credit scoring models, it can be a breach of contract with your provider and it can get you in trouble with many different regulations such as the Fair Credit Reporting Act, Military Lending Act and Regulation Z’s Ability to Repay requirements to name a few.
Kevin explains more in the video.