3 Informative Reasons Why You Need A Credit Report Now

Are you looking for a loan? Or perhaps looking for employment? For fact loans, employment and many other monetary transactions require your credit score. 

If you don’t know your credit score, it’s time you apply for

Today, any financial transaction requires your credit score-- one of the reasons you should request your credit score even if you aren’t purchasing anything; it always helps to be ‘in the know’.

 Let’s share some insider news with you. Certain credit agencies in the US are entrusted with the duty of storing credit information of users which they can sell to other companies that need to evaluate people on the basis of their credit score. You can order a free credit report annually through these companies just to know where you stand.

We’re now going to touch base on the top 3 reasons why Americans are ordering individual credit reports.

You need a loan

You could be hunting for a loan for various reasons. The very first thing you need to do before applying for your loan is to find out if you are eligible for a loan. No matter the purpose of the loan, all of these loan applications would require your credit score.

Here are the top 3 reasons you might want to sign up for a loan

•   To buy a property

•   To buy a car

•   To set up your own business

Let’s assume that you have been waiting to buy a house for a long time. Maybe you already have something in mind and want to buy it before it’s taken off the market. You might have saved up some cash for this purpose as well, but as property prices are shooting up by the day you may end up invariably requiring a loan.

If you have perfect credit scores, you can wrap up the transaction in a jiffy, but if you don’t, it takes you back to square one—requiring you to save up and wait, hoping against the odds that your dream house will still be available. You must also understand that your request for a loan could be rejected if you have low credit scores; don’t push it too long to realize that you aren’t eligible for a mortgage at the last moment.

 Additionally, your credit scores can affect the terms and conditions of the loan. It’s the same principle even if you are looking to be an entrepreneur. You know that you have the potential to succeed in your business, but don’t have the capital required for a start-up.

Let’s face it. Whether you are trying to buy a house, a car or setting up your own business, you need money. Unless you have someone to help you by lending money personally without charging any interest, the next option is to request a loan. As any bank offering a loan requires your credit scores, you’d want to know your score before you apply for the loan.

You want to help someone by co-signing a loan

Sometimes, there are certain situations that need your attention. If you decide to co-sign a loan, the banks or anybody else lending a mortgage are sure to check your credit report.

You might want to co-sign a loan for many reasons.

•   To help your children

•   To help your spouse

•   To enter into a business agreement with your partner

Though it is extremely risky to co-sign a loan--- no matter how close that person is, you need a credit report. Even if you want to help your son or daughter buy his/her own car or want to help your spouse buy a property, it is very dangerous to co-sign a loan. If they fail to pay, then the banks will sue you, as you have given them the authority by signing a contract.

This may affect your credit scores very badly. Plus, you also need to be aware that co-signers are accountable for the terms and conditions mentioned in the contract. For instance as a co-signer, you will be liable to pay off the loans if they are unable to do it.

 However, if they pay their loans on time, it will boost your credit score. Bottom-line, your credit report needs to be perfect, in case you decide to help someone. And you should check in on your credit score every once in a while to make sure the person you’ve co-signed the loan for is actually paying it off.

You need to be aware of identity theft

If you think that your financial information has been compromised, it’s time for you to request a credit report immediately. In such cases, you might notice that someone else has been enquiring for a loan under your name. If that’s the case then chances are that your data has been compromised. As preventive measure, you may need to request your credit scores from different credit bureaus to understand how bad the situation is.

You can apply for your credit score now from

•   Free Credit Pro (Experian)

•   Auto Credit Express (For those with bad credit!)

In cases where your financial information has been stolen or misused, it is possible that your credit scores could vary. If you notice that the scores from one company are way too low compared to the others, you need to start taking action. In addition, these companies don’t share information with each other. Therefore, the best way to handle this situation is to request your reports and contact each of these companies individually to understand why it happened.

Even if you have never been a victim of identity theft, it helps to check your scores to figure out if someone else has been looking at your credits. It is safe that way and moreover, if you discover any fraudulent activity, you can always file a report.

Conclusion:

As you can see, it is critical for you to check your credit scores regularly: it’s better to be safe than sorry. If you have never taken a look at your reports, you should start today. It’s important to have a complete control over your credit history, and making sure any erroneous entries are reported to the credit bureaus as you spot them. Start today and you won't regret.

 Ariyo Akinlosotu is a web based writer on financial issue