Friday, 2 June 2017

Reasons That Demands You To Look Into Your Credit Score

It is vital that you provide attention to the credit score or credit report as it creates an impact in your personal financial life. It is better that you maintain a good credit score so that it is easy for you to avail loans as and when it is needed. The lender or the bank's trust the borrower based on the credit score he holds. what is considered a great credit score? A score of above 700 is considered as the good credit score.  The credit score can also influence the residential status of the recently published an article on the importance of credit score. The article focuses on the reasons why you should pay attention to your credit score.
Many People Are Watching Your Credit Score
Your credit score is monitored by several people around the world to know about your financial status. Your employers can check your credit report before they decide to offer you a job. A very bad credit score can disqualify you for a job. The credit reports of individuals are checked by landlords and utility companies before they offer you loans. Credit score serves as a measure of financial solvency. You need to be aware of your credit score so that you can handle certain tough financial situations.
Fix The Errors
You need to review your errors as they might have errors in it. It is important that you repair the errors and improve your credit score. A credit report without proper review may result in low credit scores which can affect your financial status.Experts say that four out of five credit reports have errors. The errors may include incorrect debt or incorrect payment history. You can perform the error dispute in the credit bureau's website.
There is a chance of several inconsistencies and wrong information in the credit report which can be notified to the credit reporting agencies. These agencies rectify the errors on the credit report and provide the report with an improved credit score. It takes up to 30 days to fix the errors.
Protect Your Identity
A credit score helps to protect your identity. Sometimes a low credit score serves as a symptom to identify theft. There may be situations where a person has used your social security number to acquire loans and used your bank account for certain transaction. You can identify these activities by the red flags raised by the credit reports.
Hackers perform a transaction with other accounts by masking the transaction. Hackers or thieves try to use the account information of others for small charges. When they find a vulnerable account, they hit for all the purchases. Soft inquiries can help you to indicate the identity theft. Whenever you encounter a change in your credit score, you should file an identity theft report. By this, you can introduce a fraud alert or credit freeze.
You can access your credit score once in a year as per the Act Fair and Accurate Credit Transaction Act of 2003. You can also get a look at your credit score using Self Lender.
The above are the significant reasons to justify the importance of credit score.

No comments:

Post a Comment