Have you checked your credit record lately? No? Well, this article should give you more than enough reasons to start monitoring your credit history regularly and become more responsible when it comes to your financial activities.

What is a credit record?

It would contain all of your personal information, specifically your financial behavior.  It also contains various data on your borrowing and repaying, late payments and bankruptcy.

When a person applies for a credit or loan from a bank or credit company, the information that he or she would provide are submitted to a credit bureau, in which the files are organized and kept. This information is utilized by prospective credit card companies and banks to determine if the person applying for the loan has the ability to repay the debts.

Advantages of checking credit record
  1. 1.    Faster loan/credit approval
  2. After checking your record, and  having proven that you do pay your debts on time and that your salary is adequate enough to suffice for the loan applied for, you will most likely get approved faster.
  3. More often than not, how religiously you are able to comply with your payment obligations is more important than the numbers on your paycheck. This gives them an idea of your character and whether you will be able to adhere to the terms of the company.
  4. 2.    Lower interest rate
  5. If you have a good credit score, not only will you get approved but you may also enjoy lower interest rates.
  6. 3.    Verification of records
  7. Credit records might not be 100% accurate, that’s why you would also need to have them viewed in order to check and verify the information listed. Important information might also get omitted and inaccurate ones documented, both of which might lower your chances of acquiring a loan. It is a must that you report these errors to the respective agencies.
  8. 4.    Helps you become ‘financially’ responsible
  9. It gives you a view of how well you are able to pay off your debts, your late payments and overcharges. Just think about all the money lost in charges and how it lowers your credit score. With credit history, you will be able to prioritize and manage your financial dealings.
  10. 5.    Increases eligibility for future loans
  11. You may not need a loan right now, but you should always try and make yourself ‘eligible’ for one if in case the need arises. You still have chances to increase or redeem your credit ‘worthiness’ now.
 
How to check my credit record?

There are certain services, which are available online, that offer to collect, organize and analyze your credit history from your creditors, as well as from public records. The records are then made available to current and prospective credit companies, banks and employers, thus speeding up your ability to acquire a loan.

What’s good with these services is that you would be able to avail of them for a very low price. This is one service you will not regret subscribing to for it saves you the pain of getting your loan application rejected without a clue why. Knowing your credit record will let you be more responsible with how you handle your finances in order to keep your family’s best interest today and in the years to come.
   



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