There is a very important reason you get a credit report before making a major financial decision. Credit reports seem to be getting a lot more publicity than they used to. There are commercials on TV and the Internet advertising instant credit reports. Most say the service is free, but it is worth noting that many of these companies require a person to sign up for a trial period of their other services in order to get the report. There is a reason for the credit report’s rise in popularity. Sadly, that reason is identity theft. In the past, the idea of having one’s identity stolen seemed like the plot to a farfetched movie, but in recent years it has become a growing problem. One important reason you get a credit report is so you can make sure that all claims are legitimate. Getting reports on a fairly regular basis will allow people to keep track of their credit scores and make sure they have not changed unduly.
The Reason You Get a Credit Report when Applying for a Loan or Credit Card
It can be a very good idea to get a credit report before applying for a loan or credit card. If a person finds that his credit score is low, his options will most likely be different than those of a person with great credit. There are credit cards that do not require good credit and there are loans that someone with bad credit can get, as well. If a person knows ahead of time what he is most likely eligible for, it will save time and it might spare him from having his application rejected.
There Are Resources! There are professional credit counselors that will go over credit reports with people. The counselor can do a borrowing power analysis, which will give a person some idea of what rates he would have to pay on a loan. The counselor can also do a step-by-step breakdown of the credit report, so clients know exactly what they need to do to improve their ratings.