Why Monitoring Your Credit Report Is So Important

March 31, 2012 by  Filed under: Credit 

One of the most important things a person has in this country is his or her credit rating. Most people don’t realize the importance of this number, but the truth is, a credit score determines a person’s place in society according to governments, banks, and other organizations. What is this number? Your score is a number that determines a person’s eligibility for credit which, of course, almost seems like the lifeblood of this country.

What does credit get a person? It is used to determine many things. If a person wishes to buy a home, an automobile, open up a credit card, or even apply for certain jobs, that person’s credit score determines if he or she has the creditworthiness to do these things. A person wishing to buy a home or a car needs to have a decent score. If a person’s credit score isn’t very good, then he or she will either be denied the loan or will receive a very high interest rate. As far as employment, more and more employers are running employees’ credit reports as part of a pre-employment screening, especially if that person is going to be handling money or making financial decisions in his or her line of work.

Knowing how important that a credit rating is, a person should be diligent in keeping track of his or her credit score by running credit reports regularly. A credit report shows a person exactly where he or she stands in terms of creditworthiness. A credit report gives a person a breakdown of every creditor they owe money to, as well as how much money they owe the creditor, the minimum payments, and their credit ratio. A person’s credit ratio shows their currently available credit compared to the amount of total potential credit they can use. All of these factors work together to give a person a credit score.

If there are inaccuracies on a person’s credit report, it is better to find out about them early, rather than when applying for credit of some kind. Often, if there are fraudulent accounts or errors reported by a person’s creditors, the only tell-tale sign will be visible on a person’s credit report. There are free annual reports, and services available online that cost a minimal amount of money. It is a good idea for a person to check their credit at least once a year, if not regularly, just to make sure everything is accurate.

To learn more about checking your credit report please visit this link!

Article Source:

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: