Your credit report provides detailed information about your credit history and when requesting a loan, the content of your report can make or break the deal. Many people recognize the importance of a good credit score, but neglect to follow their own.
People live busy, hectic lives, and often their credit profile is the last thing they think about. However, ignoring your credit report can cause family problems. So much can affect your score, and the more you know about it, the better. If you keep an eye on your credit, you can buy a house, secure a job, and save money on insurance.
Every year, every consumer is entitled to one free credit report from each of the three agencies: Lexirian, BundUnion and EQFast. When did you last order your credit report? If it is more than a year ago, there are various reasons for checking this.
Reasons for checking your credit score
You have been refused
If you have been denied a loan or credit card, you are entitled to a free copy of your credit report from the agency used by the bank to evaluate your creditworthiness. For example, if the bank has ordered your BundUnion credit report, you can receive a free BundUnion report. The rejection letter that you receive from the bank or credit card company contains instructions for ordering your report. You must request your free report within 60 days of a rejection.
If you review your report, you can better understand the rejection. You may have too many existing accounts, or an error has been reported. A free report brings problems to your attention, so you can take the necessary steps to improve your credit score or adjust something that has been reported incorrectly.
You are planning to apply for a loan
If you are considering buying a car or a house and are planning to apply for a mortgage loan, check your credit before you meet a lender. Familiarity with the information in your credit report provides guidance as to whether a lender approves your request. Since each credit application lowers your credit score, you must limit the number of times that lenders check your credit. If a lender picks up your report when you probably Marchmain familyijk does not qualify for credit, this results in an unnecessary investigation. Factors that can disqualify you for a loan include direct debit accounts, late payments, a poor credit score and high balances.
If your credit is not perfect, you can solve these credit problems before you apply for a loan. For example, dispute errors in your credit report, pay off arrears, and reduce credit card credit. Once your credit report reflects these changes, you must re-apply for the credit card that you want.
Check for identity theft
It only takes a few minutes for someone to hack your account or steal documents containing persooMarchmain family-friendly information. Nobody ever thinks that identity theft could happen to them – until their credit score drops and they discover fraudulent accounts in their name. According to a fraud report from Javelin Strategy and Research, approximately 11.6 million people were victims of identity theft in 2011.
You can lock your mailbox, destroy your e-mail and avoid unsecured websites, but despite your best efforts, you are not invincible for identity theft. If you are the victim, it can take months to dispute fraudulent costs: victims spend on average between 200 and 500 hours repairing the damage.
Becoming a victim can completely spoil your credit score and stamp your dreams. Provide your statement of creditworthiness at least once a year to ensure that your credit profile remains accurate. If you want to be extra safe, sign up for a service that checks your credit report daily for changes.
You have approved a loan
Approving a loan can help a friend or family member get financing, but if they fail, you are liable for the debt. If you have taken a chance and have taken out a loan, it pays to keep a close eye on your credit report. If the person for whom you are a co-owner develops a habit of making late payments (or misses them altogether), this information will appear in your report. Even if you have a great relationship, never assume that he or she makes timely payments. Regularly checking your report can bring the problem to light early because it gives you time to make arrangements with the creditor before serious credit damage occurs.