Your credit report is an extremely important factor in becoming financially secure. There are many reasons why every consumer should pull their credit report yearly. The main reason is that you need to know exactly what is being recorded on your credit report by your creditors, and you need to make sure that information is reported correctly.
Credit reports can affect your ability to get a job, purchase a new car or home, and can also influence how much interest you will pay on your credit cards and other debts.
Many companies now pull credit reports for job applicants. They may require your score to be above a certain number or that you current on all of your debt obligations. You need to make sure your credit report is positive when applying for new career opportunities.
Potential lenders for new car or home loans will pull your credit report. It is part of their due diligence, and in most cases is required. All lenders have specific guidelines for who will and will not qualify for a loan. The cost of the loan will also be determined by your credit report and credit score.
When applying for new credit cards, the prospective creditor will pull your credit report. The credit line you receive and the interest rate you will pay is determined by your credit report and credit score. In most cases, lenders/creditors also take into consideration your income and assets.
Considering these factors, it is easy to see how any kind of error on your credit report can cost you more than you imagined. As a consumer, you have access to one free credit report per year from each of the three major reporting agencies. All you’ll need to do is go to www.annualcreditreport.com and order the report. You can dispute any information on your credit report if there is an error. Also, if you need help paying off debts, there are non-profit consumer credit counseling agencies, like Clearpoint Credit Counseling Solutions, that can help you further understand your entire credit portfolio.