When you want to get credit, you want to get the best possible terms. And to get a good interest rate, you need to know your credit score, it’s the only tool that can help you get leverage with the creditors. If you know you have a good credit score, you can negotiate for a lot better terms with the lender.
What Is Credit Report?
A credit report contains your credit history, with all the good and all the bad. All the details about your debts, delayed payments, repayments and bankruptcy information is in the report. It’s a very useful tool for the lenders as it gives them an insight on how reliable you are, it helps them decide whether they should loan you the money or not.
Of course, every lender wants to make a profit. But they also want to reduce the risks, so they will choose individuals that pose less risk for them. Lets go into details with what credit reports really are and why are they important to you and to the lenders.
I’m sure you wouldn’t give your money to someone that needs a loan. Well, at least not without being sure that your money will be returned to you and returned on time. The same thing goes in the corporate world, companies are looking to find someone safe and credit report tells them who they can loan the money to. All the details in the report will generate your credit rating. If you have a good credit rating, you will easily get new loans and get good terms. On the other hand, if you have bad credit score, you will have troubles getting a new loan. You will have to work hard to improve your credit score before contacting a financial institution and applying for loan.
What’s Your Credit Score?
Every individual has the right to request a credit report and get this report for free. But you are limited to one report per year from Equifax, TransUnion and Experian. It’s easy to request a credit report today, you can do everything online, so it’s quick and easy. But the thing is, you can’t ask for the report when it suits you, you need to wait for entire year to find out what’s your credit score. Plus, you have to pay whenever you want to view your score.
Now, this may be a bit problematic for people who are working hard to improve their score. Some of us are trying to get a better score in order to get a loan. Applying for a loan when you have a bad credit score is not smart and it may turn down lenders. You don’t want this to happen, of course, so it’s understandable that you want to improve your score.
How To Get Free Access To Your Credit Score?
Luckily, things change and now you can get a free credit report, at any time you want. Free credit reports from all 3 bureaus are available to anyone, at any time. You only need to provide your basic information and that’s it. Again, you can do all this online so it’s easy to track how eligible you are for a new loan and if you are making good progress on improving your score. It’s a lot easier to work on improving your chances to get good terms for a new loan when you have free access to credit reports from all 3 bureaus. The fact that you can check your progress at any time and at no cost makes you feel relaxed and more motivated to work on improving your current score.