A credit report is a consolidated account of your past financial borrowings and repayments. Every time you borrow, pay or delay, it will be reflected in your credit report. Money lenders use it to assess how much of a risk it would be to lend to you.
Credit reports work through issuing a credit score. They will compute your borrowing and repayment against the how long it took you to repay and come up with a score which ranges from 300 to 850.
The higher it is, the more financially stable you are considered to be. It means that you are more likely to be offered a loan, a credit card or a mortgage. If your score is low, it means that your application for borrowing is unlikely to be accepted.
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.
Now, lets look in more detail at some of the reasons why it’s important to have a good credit score…
– Once you have gotten yourself a healthy credit score, it means easier access to more finances. This can be a car, an apartment, or even just a simple bank loan for your business. These days, it’s almost impossible to get a mortgage if you don’t have a good credit score.
– If your credit score is above average, you’re considered to be a reliable person who promptly takes care of their debt. This encourages vendors to give you better deals. You will likely get healthy discounts and longer repayment periods.
– When applying for a new job, most employers will run a credit check on you. Applicants with the best credit scores are looked on favorably, as they are seen as being more honest and reliable.
—
Get my free credit report here http://www.myfreecreditreportgov.com/
