Free Credit Rating Check: Beneficial For The Borrower

It is a fact that some of the borrowers are stained with defaults

, arrears, IVAs, CCJs, bankruptcies etc. They are to borrow from several lending agencies and they cannot reimburse the loan amount as per the agreed document. They are not always to be blamed for this. Actually, they earn less enough and they cannot meet the unavoidable demands that they face time and again. It is said that their credit score slides below 580 as per FICO. When they look for fresh finance, they are refused by the lending agencies. It is another thing that many of these borrowers do not know what credit score is and what free credit rating check is.

There are important financial bureaus like Equifax, Trans Union and Experian. These bureaus prepare the credit reports of the borrowers. They obtain different data of the annual financial operations of the borrowers from several financial institutions or lending agencies. Those data contain borrowed amount, credit inquiries, credit pattern, payment accounts, and credit accounts of the borrowers. The financial bureaus use these data and create credit files of the borrowers. They create such files separately. In order to understand the credit status of the individual borrower, they have designed a scale with equal marks from 330 to 850. The reading of the marks is termed as credit score or credit rating.

It is important to have healthy credit rating if anyone looks for loans or mortgages. What, then, is the significance of free credit rating check?

An individual borrower can get his credit file. He can go through the websites built up by the financial bureaus on the internet. He can find the credit report free of cost.

Sometimes, errors are found in the credit report. The errors occur in the credit report if the report is created with wrong use of the available data. Some entries may be incorrect. The borrower can check the credit report and take the mistakes to the notice of the staff of the financial bureaus. It happens that the credit report looks healthier when necessary corrections are made. In this way, free credit rating check benefits the borrower.

The borrower can find the free credit rating check important for one more reason. He may come to know that his credit rating is poor and that he cannot secure finance because of this. He can give efforts to improve his credit status before he applies for securing fresh finance.

by: Alice Marlen

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