Which scenario illustrates a permissible use of a credit report?

The scenario where John applies for a credit card account illustrates a permissible use of a credit report because lenders are legally allowed to access a consumer's credit report as part of their decision-making process when evaluating a credit application. The Fair Credit Reporting Act (FCRA) specifically outlines that creditors may obtain a consumer's credit report to help assess the risk associated with lending to that individual. This is essential for the lender to determine creditworthiness and to set terms for the credit being offered.

In contrast, while Mary wanting to know her own credit score is certainly a valid action, it does not involve a third party accessing her credit report for an evaluative purpose. Similarly, Lori seeking to dispute her credit report is about her rights and responsibilities for correcting inaccuracies in her own report, rather than an external party's permitted use. Lastly, a community organization wanting to see applicant backgrounds raises questions regarding the purpose and consent involved, which may not align with the FCRA’s stipulations regarding permissible uses for credit reports.