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How Often Should You Check Your Credit Report?

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Why Is A Good Credit Score Helpful?

A consumerís credit history is the barometer for their financial health.

There was a time when good credit was only important in securing a loan for a large purchase, such as a house. Nowadays, a personís credit history affects every aspect of their life, from jobs to rates on car insurance. Consumers with poor credit will have a lot of doors closed to them.

There are three major credit reporting agencies in the United States: Equifax, Experian and TransUnion. Each agency compiles a credit report on consumers based on their financial histories. Financial histories include bank accounts, credit card accounts, auto loans and even bankruptcies and foreclosures. Any time a consumer has taken out credit, it is included in their report.

Credit reporting agencies use that information to assign a credit score to consumers. The score is ascertained through calculating a mathematical algorithm, which extracts data from the report to generate a three-digit number. Scores can range from 300 to 850. Consumers who have a credit score of over 700 are considered financially stable and desirable individuals with whom to conduct business. Individuals with scores under 500 generally do not secure new loans or credit, and can be subjected to much higher interest rates than their financially-stable counterparts.

There are many reasons why a good credit score is helpful.

In addition to resumes and interviews, employers also have begun to give credence to potential hiresí credit histories. In a recent nationwide survey, 69 percent of employers admitted to using an applicantís credit report as part of the hiring process. The Fair Credit Reporting Act requires any employer who wishes to view a potential employeeís credit report to first seek permission from the person. Persons with higher credit scores are seen as more honest, hardworking employees and employers will lean toward hiring someone with an excellent credit score over someone with a poor one.

Credit card companies also use a consumerís credit score to determine whether they wish to extend credit to that individual. Consumers who have excellent reports can expect to receive unsolicited offers from credit card companies quite frequently. Credit card companies want to do business with those who are financial stable, offering lower interest rates and other incentives to encourage them to open accounts.

Mortgage lenders also tend to provide better interest rates and loan terms for those with a good credit score. When applying for a mortgage, most brokers prefer consumers whose credit score is at 700 or higher. These are borrowers who have solid financial lending histories and are seen as very low risk for defaulting on a mortgage. Those with scores under 700 can find themselves subject to higher interest rates, which in turn results in larger monthly payments.

Utility companies also determine whether to provide service based on a personís credit score. Most utilities are paid for after they have been used by the consumer, making this a very risky venture for the utility company if a person has bad credit. Utilities have little recourse other than stopping service if a person fails to pay for the gas, electricity, water, phone or cable services they already have used. If a consumer has a bad credit score, it can affect whether a utility company chooses to provide service. TopConsumerReviews.com has reviewed and ranked the best credit repair services available today.

Credit freezes don't stop you from being able to get a free credit report: Money Matters

Q: After the Equifax breach in September, I froze my credit reports with all four of the credit agencies. Today, I decided to get my free credit report so I went to the free credit report site, entered the requested info, and chose Equifax. I used ...

Published:  Wed, 15 Nov 2017 01:22:00 GMT



Household Debt And Credit Report: Up $116B In Q3, Another Peak

The latest household debt for Q3 2017 was up 0.9% from Q2 and currently at $12.96T and currently at its peak. Here is an excerpt from the latest press release: As a result of the housing and mortgage crisis of the Great Recession, economists have been ...

Published:  Wed, 15 Nov 2017 23:30:00 GMT



Best Car To Buy 2018; Tesla Semi, Roadster; VW e-Golf driven; electric-car tax credit: The Week in Reverse

Which vehicle did we name our Green Car Reports Best Car To Buy 2018 ... The U.S. House of Representatives "tax reform" plan kills the federal income-tax credit for buying an electric car, but the later Senate version of the tax-reform bill keeps it ...

Published:  Sat, 18 Nov 2017 00:00:00 GMT



AFBC Encourages Consumers to Check on Their Credit Report and Student Loan Accounts

Emeryville, CA, November 14, 2017 (Newswire.com) - A credit report is like a report card in the world of debt. It's important to not only stay current with debt, but also make sure that the "report card" reflects true performance. However, sometimes ...

Published:  Tue, 14 Nov 2017 12:00:00 GMT



Lloyds' Avios Reward credit cardholders report fraudulent activity

Thousands of Lloyds Avios Rewards American Express credit card customers have been targeted by fraudsters, the bank has admitted. Reports first emerged on air miles site Head for Points, where readers asked if the credit card had suffered a major data breach.

Published:  Sun, 19 Nov 2017 18:15:00 GMT



New report shows that half of the world's wealth is owned by the richest 1 percent

A new report by financial giant Credit Suisse shows that the world's super-rich have accumulated more than half the world's wealth, while the 3.5 billion poorest in the world account for just 2.7 percent. Since the financial crisis, the report states ...

Published:  Sun, 19 Nov 2017 03:49:00 GMT



How to Read Your Free Credit Report

This content is made possible by our sponsor; the views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. A key step to understanding your creditworthiness is knowing what's in ...

Published:  Wed, 08 Nov 2017 02:37:00 GMT



Credit Suisse report finds richest 1% now own half the world's wealth

The richest 1% own half the world's wealth, according to Credit Suisse's global wealth report. Credit Suisse also found that this past year's growth created a slew of new millionaires-2.3 million of them, with half living in the United States.

Published:  Tue, 14 Nov 2017 00:00:00 GMT



Credit checker Experian reports 6 pct rise in H1 operating profit

Nov 15 (Reuters) - Experian Plc, the world's biggest credit data company, reported a 6 percent rise in first-half operating profit, driven by growth across its operations. The FTSE 100 company, which is best known for running consumer credit checks for ...

Published:  Thu, 16 Nov 2017 00:46:00 GMT



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