Your credit report and credit score tell an important story about you. They tell the story of your financial history and everything related to every financial decision you’ve made. It is used to grade you on how good you are with managing finances, paying off your debts and how trustworthy you are in terms of paying off what you owe. To financial institutions across the US, having a bad credit score means you are going to get rejected for loans (or have to pay higher interest rates to secure one), rejected for credit and so on. It is something of utmost importance to make sure your credit report is as clean and as positive as possible.
To find your credit history and analyze it for yourself, you can go online and find any website that provides this information from the 3 main institutions: Experian, Equifax and Transunion. Either of these institutions will look at your entire financial history, analyze your decision making, grade you and put all of that information into a readable report. Any website that compiles a credit report with data from these 3 institutions will be accurate. You can compile your credit report online for as low as a dollar, and there are several websites that offer this service, so you can take your pick. Not only will you be able to check your credit score, but see your entire credit history.
This is important because checking your credit history and financial decisions on a regular basis will help you in identifying mistakes you’ve done in the past, and try to avoid making them again in the future.
You can consider your credit report to be something like a report card from school. Have bad grades and doors will close for you, have good ones and every door will be open. When you have a positive credit history, it will be incredibly easy to secure that loan(even very big ones) with very low interest rates, while having a poor credit score will obviously make it tough for you to secure any form of financial aid.
One extra thing that will show up on your credit report of significant importance is any fraudulent attempts by others against you in the past. You can even identify possible mistakes made by past lenders that you can then move to correct and clean up from your credit report.
You can use a credit repair company’s help to assist you with removing any errors from your report that could make your score rise back up over 600 in many cases. So before trying to go for a loan, always make sure to check your credit report and try to identify if errors exist. They can make a big difference.
A good credit repair company can also assist you in raising your score even if you have no errors on your report. They will devise a plan you can follow to start repaying some of your debt, which will in turn lead to your credit score rising back to decent levels.
Use this information to always be aware of your financial history, your credit score, and make it easier on yourself when trying to secure a loan.