Thursday, November 14, 2013

Why Is Your Credit Report Important?

Your credit report is an extremely important financial report card that is used for many different things.  Landlords may look at your credit report to make the decision on whether or not to rent to you.  A prospective employer probably will check your credit before hiring you.  Lenders will definitely look at your credit report before they let you borrow money.  Because your report is used for so many different things, it is essential that you understand the importance of this report.

Your Credit Report Paints a Clear Picture Of Your Finances

One reason why your credit report is so important is that it lets your landlord, employer and creditor know whether or not you have been responsible with your money in the past.  If you have a lot of maxed out credit cards, late payments or charged-off accounts where you did not pay, this is a bad sign that you haven’t done well with money.  A landlord, employer or lender may not want to trust you to be responsible with your cash in the future.  A good credit report, on the other hand, shows that trusting you to be responsible with your money isn’t a big gamble.

Your Credit Report Dictates Your Credit Worthiness

Many lenders will use a credit report and credit score as a primary determining factor as to whether or not they should allow you to borrow money.  If you have a very low credit score, lenders are going to be reluctant to offer to loan you money and may turn you down entirely.  The creditor could also offer you a high interest rate loan if the lender believes that your credit report indicates you aren’t likely to repay your debt.

Your Credit Report Helps You to See All The Debt and Credit You Have

Looking at your credit report makes it easier for you to prioritize debt repayments by helping you to see what cards are maxed out and what needs to be paid.  Since you can see inquiries and new accounts that have opened, your credit report can even be a tool to aid in the fight against identity theft.  Since you can see someone else may have opened an account in your name, you can take action to reclaim your identity and fix your credit.

With so many reasons to check your credit report, you shouldn’t hesitate to order yours today. Visit Credit Report 123 to get started.

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