Your credit score is important, as it’s used to rate your creditworthiness. By getting a free credit check (which every consumer is entitled to once a year) you are able to get access to important information, provided by your credit providers, in a clear, easy-to-read format.
If you are looking to get a loan, keep in mind that the credit provider of your choice will use your credit report to gauge how well you are likely to service the loan agreement. The lender will do a credit check after getting your consent during the application process.
It’s important to regularly view your credit report in order to stay informed about your credit status and to ensure its accuracy. Research has shown that credit reports aren’t always accurate, so it’s important to make sure where you stand. Identity theft is a reality that many people have to deal with. By doing something as simple as taking advantage of running a credit check, you can avoid nasty surprises.
When you check your credit you know where you stand before applying for credit.
More reasons why running a credit check is important:
Potential employers use credit reports to judge how responsible and financially stable you are. Some employers look at credit histories in order to separate one candidate from another.
Credit record agencies gather and sell information about the creditworthiness of individuals and businesses. Lenders use your business’s and the owner’s credit records to make a decision about the risk of lending you money.
Running a credit check gives you a good indicator of how well you’ve handled your finances and provides details such as loans taken, accounts opened, credit cards you possess as well as your repayment history.
By running a credit check you can also make sure that you haven’t become a victim of identity theft.