Do You Appreciate The Importance Of Having A Good Credit Report?
A credit report is a consolidated account of your past borrowings and repayments. Every time you borrow, pay or delay, it will be reflected in your credit report. Lenders use it as a barometer of how likely you are to pay back any money lent to you.
A healthy credit report is confirms that your finances are in order. It says that if you are lent moneu you should be able to pay back what you have borrowed.
Through your credit report you will be issued a credit score. They will calculate your borrowings and repayments against the how long it took you to repay and come up with a score of between 300 and 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 it’s low, it means that your application for borrowing money 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 are considered a ‘high risk’, and you should look to improve your credit score by paying off some of your debts.
So, why exactly is it important to be have a good credit score?
- Once you have gotten yourself a healthy credit score, it means easier access to more finances. This could be a store card, bank loan or a car. Today, it’s practically impossible to mortgage a house 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 will likely get healthy discounts and longer repayment periods.
- When applying for a job, employers may do a credit and background check on you. Applicants with high credit scores are in an advantageous position, as they are seen as being more reliable and honest.
- One of the most important and little known An important benefit of a credit report is that it’s an identity theft tracker. If someone steals your identity, and is using up your finances, it will appear on your credit complete credit report will even flag unusual items for your attention.
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Get my free credit report here http://www.myfreecreditreportgov.com/
Posted by Carlos Sagastume on January 30, 2010. Filed under HUD Homes.
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