The First and Foremost Step Of Your Financial Well-Being – Your Credit Report

Overview

We as customers need to ensure that our credit report is well-maintained and is error-free because it is the key to our financial health. It is crucial to check your credit report periodically along with analyzing the facts that can boost or give a set-back to your credit score.

A number of folks do not review their credit report

70% of the people who apply for loans see their credit report for the first time when they plan to buy a home or a car. This, in fact, needs to be done much before the application is made.

Long before you plan for such big purchase you need to be sure that the information in your report is accurate. This is because your credit report is a gateway for you to secure a loan at the best interest rate.

The reviewing report can help you detect identity theft

Identity theft is one thing that can ruin your credit history completely and at times, people get to know about it after a major loss or a damage has incurred. People with a habit of checking their report regularly can get aware of this on time and can take necessary steps to rectify the same.

Mistakes in your credit report can deprive you of a number of benefits

Credit bureaus deal with millions of reports and mistakes that are bound to happen. However, a minor slip up can cost you a great deal of loss. If you feel that there are errors in your report, then disputing the same on time is wise. Credit Reporting Act enables customers to dispute any error in their report with the bureaus. Make the most of your rights and stay credit healthy.

Employers too consider your credit report

One of the most controversial uses of credit report is by the employers. There are a number of multinational companies that consider the creditworthiness of an employee before giving them an offer letter. Hence, maintaining a healthy score is extremely crucial for all your future endeavours.

Rejection for loans and mortgage

Banks and creditors mainly consider the applicant’s credit score before even looking at the application. A number of people end up with a rejection letter because of a poor credit score. This score may be because of a small mistake in your report which could have been rectified if you had been active enough to identify and fix the same on time.

Get smart! Stay alert! And ensure you inculcate these small things into a habit of remaining credit healthy and take up bigger ventures in life!

Updated: January 16, 2017 — 7:14 pm

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