When you apply for a loan, in order to buy real estate, a car, a boat, or any other major purchase, also when you apply for a new credit card, your credit history is reviewed. Why? The person or financial institution, bank, etc., whom you get the loan, or credit card, from wants to know what the likelihood is that they will be paid back by you. Depending on the "likelihood", of their being paid back, they will 1. approve or reject making a loan to you, and 2. base the interest rate and fees they charge you, all because of your credit history and credit score. What is in your credit report, "your financial history"? Do you pay your bills on time? Bills, even utility bills, mortgages, your monthly rent, credit cards, long overdue or overlooked, can show up as a blotch on your credit. Do you pay your credit cards in full each month? The amount of unpaid credit cards, even if they're never late. The more you owe the less credit worthy you are. The amount of credit already extended to you; loans or credit cards. Credit extended to you by your local hardware, or appliance, etc., store are looked upon unfavorably and has a negative impact on your credit. Cancel and make sure you get rid of the bad credit as quickly as you can. Unpaid medical services. For some reason they seem to bother potential lenders. Collections. Even a $100 that you borrowed and never paid back, that has been put on your credit report could hurt you. These factors, plus the 100's of other things that are on your credit report, are summarized by your 'credit score' Do you want to know what your credit score is? You can get one via those 'Free' credit reports, although they only show you information from one of the three credit bureaus, or you can buy a 'Tri-Merged' credit report. After all a 'tri-merged' credit report is what the banks or credit card companies will use in reviewing you, and "wouldn't you like to know what they are going to see"? The better your credit history and the better your score score, the lower interest rate you will get and you will less problems getting the loan you need. Request a credit score now so you can find out what your credit score is and see what can be done to fix it, should you need to. You will be glad you took care of anything that needs it now, rather than later when you actually need that loan and can't get it. Your credit score can affect you greatly if you don't know what to do about it now. |
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