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How Often Should You Check Your Credit Report?

Why Is A Good Credit Score Helpful?

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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.

Here Are the 2 Most Powerful Ways to Increase Your Credit Score

Some are rather obvious, such as checking your credit report for errors or not applying for new credit any more often than you need to. Others are more outside-the-box. As one example, did you ...

Published:  Sun, 21 Jul 2019 03:04:00 GMT



I couldn't access my credit report online. What should I do?

Q. How do I get access to my credit report online? When I try to access, I'm denied access because I think I answered the security questions wrong. - Borrower A. You're not alone in this frustration, ...

Published:  Tue, 16 Jul 2019 06:14:00 GMT



House Financial Services Committee Passes Credit Reporting Bills

Four bills dealing with credit reporting were passed last Thursday by the House Financial Services Committee. While there has been bipartisan support for credit reporting reform, none of the bills ...

Published:  Tue, 16 Jul 2019 11:58:00 GMT



US credit agency Equifax to pay $700m in a settlement over 2017 data breach: Report

US credit agency Equifax is close to a $700 million settlement agreement with authorities over the theft of sensitive personal data of nearly 150 million customers, the Wall Street Journal reported. ...

Published:  Sun, 21 Jul 2019 04:48:00 GMT



Senior House Republican proposes credit reporting changes

WASHINGTON - A senior House Republican is proposing to give the Consumer Financial Protection Bureau supervision and examination authority over large credit reporting firms. Rep. Patrick McHenry, ...

Published:  Fri, 19 Jul 2019 09:30:00 GMT



How do you log in to Universal Credit and what are the benefits?

UNIVERSAL credit is the latest way that the government payout benefits ... The service also allows you to report a change in circumstances, add a note to your to-do list and see when your next payment ...

Published:  Sun, 21 Jul 2019 09:48:00 GMT



How a Foreclosure Affects Your Credit Report

A foreclosure can mar your credit report for seven years from the date of your first missed payment. During that time, it can affect your credit score and the way other lenders view your ...

Published:  Thu, 18 Jul 2019 07:33:00 GMT



Equifax could pay $700 million to settle with FTC over 2017 data breach, report says

In September 2018, a year after Equifax disclosed the data breach, a new federal law went into effect where every American can freeze their credit reports for free at Experian, Equifax and TransUnion, ...

Published:  Fri, 19 Jul 2019 18:55:00 GMT



Will Applying for a Personal Loan Hurt Your Credit?

And the long-term effects of having a personal loan on your credit report can greatly outweigh the initial sting of applying for one. First off, everyone's credit history is different and there are a ...

Published:  Sat, 20 Jul 2019 05:09:00 GMT



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