Credit Reports – Check Yours Before It’s Too Late
February 3, 2010 by Mark Walters
Filed under Credit Debt
A credit report is a consolidated account of your past borrowings and repayments. Each time you borrow, pay or delay, it will be reflected in your credit report. Money lenders use it to assess how likely you are to pay back any money lent to you.
Credit reports work through issuing a credit score. They will calculate your borrowing and repayment against the how long it took you to repay and come up with a score which ranges from 300 to 850.
The higher it is, the more financially stable you are considered to be. It means that you are good for a loan, a credit card or a mortgage. If your score is low, it means that your application for borrowing has a high chance of being rejected.
If your credit score is over 700, you are considered to be in excellent credit health. If credit score is below 600, then you need to improve your credit health by paying your debts off.
So, why exactly is it important to be have a good credit score?
- Once you have a good credit score, it means easier access to more finances. This could be a store card, bank loan or a car. Today, it’s almost impossible to get a mortgage with a bad credit score.
- If your credit score is above average, you’re considered to be a reliable person who pays back what you borrow. This encourages lenders to give you better deals. You may find yourself getting longer repayment periods or healthy discounts.
- When applying for a job, employers may run a credit check on you. Applicants with high credit scores are looked on favorably, as they are considered to more honest and reliable.
- An important benefit of a credit report is that it’s an identity theft tracker. If anyone steals your identity, and is using up your finances, it will appear on your credit report. A thorough credit report will even flag unusual items for your attention.
Get my free credit report here http://www.myfreecreditreportgov.com/
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