As you might have heard, lenders will always check your credit score or credit report, before they grant you credit. But what you might not have known is that other institutions do credit checks as well – like insurance companies and vehicle traders. Even landlords and employers look into your financial records nowadays!
But why is this even important to them?
Your credit record is an indication of your overall financial health. It basically forms part of your identity as a consumer. Whenever there is an exchange of money involved, businesses want to make sure that they are dealing with people who have the means to pay them.
Insurers, for instance, are legally required to asses you as a risk factor, and this in turn will determine the monthly premium they offer you.
Okay, but why should knowing my credit score be of any concern to me?
Well, if your score is bad, you can actually do something about it. Plus, looking at your credit report will give you the chance to spot any fraudulent or suspicious activities committed on your name without your knowledge.
You can improve your credit score by:
· Paying your accounts on time
· Paying all your outstanding balances in full
· Negotiating lower, more affordable premiums with your creditors
· Being consistent with your payments and letting your creditors know immediately if you are having financial difficulties
Don’t underestimate the power of your credit score. It is an indication that you are a responsible person; could save you money in the long run, give you access to much-needed emergency loans, or even help you land your dream job!
For anything else, GetBucks is here to help! Get personalized online credit anytime, anywhere!