A credit check helps lenders to assess if you are a reliable borrower and can afford to borrow more money and if you will repay it on time
. It also helps to prove your identity. The information included in the report shows any loans you have had and if you made your repayments on time. Any late payments, bankruptcies and non payments are normally reflected.
A lender can only also look through your report with your permission. After reviewing your report they will then decide whether they will lend you money or not. It also helps them determine how much interest rate they will charge you. If you have an excellent record they will probably charge you a lower interest rate.
Other individuals who may also want access to your report includes prospective employers and landlords only with your permission. This means that your record will affect chances of you getting a job or renting a house. It is therefore important to ensure that your report is up to date and accurate at all times.
Monitoring your report will help protect you against identity theft. This involves criminals stealing your personal information and using it to take over your existing accounts or setting up new accounts in your name. Always take time to scrutinize your records and report any suspicious entries you spot to the relevant agencies.
There are a number of places where you can get the report from. One of these sources is the Internet. You can get reports from different websites. The advantage is that these websites also provide useful tools that give you insight about your financial position. You can get a free report from any of the national agencies once a year.
It is important to review your report at least once every year. This is so that if your financial situation is in danger and in need of repair you can act on it as soon as possible. You can request for a report in a number of ways. You can request for it through e-mail, telephone or postal mail. The online option is best if you want a quick response.
It is advisable to always conduct a credit check to be aware of your records. This is especially important when you want to borrow money. Make sure that the report is always up to date and if there are any errors report it and get them corrected as soon as possible.