Why is important to know your credit report?

Question

I constantly listen to adds and recommendations that knowing your credit report score will help you get a better loan or deal, with less interests. Isn't it enough to know that you have bad, ok or excellent credit? Do you actually go to the bank or the car dealer and say something like: "Hey, my credit score is 740, give me a good deal!"

I'm from another country and I'm trying to build my credit history, so any help is welcomed. Thanks!.

Answer 1

My answer will probably confuse you even more, but I'll try to consolidate some of the reponses you received.

You don't need to know your exact score number.

It is recommended however that every year or two that you obtain a copy of your credit report from one or all three credit reporting agencies. You can receive it for free, once a year. And it can be done online and received on line. The purpose of looking at your credit report is to make sure that all the information there is identifiabe (by you) as business that you have in fact done. If you notice entries about getting a loan or applying for credit or a credit card and you think to yourself, "What's that? I never applied for that loan", then this is where you need to be concerned and to inquire further. It may be an indicator of identity theft. Many people don't even know they are a victim until years later.

You can also order your credit score for an extra cost. But the score may saitisfy your personal interest more than anything. When you apply for a loan or credit and you know your credit is good, the red flag will come if the lender tells you something to the contrary. Here's where you can wonder if your score is low and why, but then it still goes back to looking at the credit report for entries that don't match what you know to be accurate.

Answer 2

It's a good idea, but not for the reasons many of the infomercials list.

Having a good credit score can give you cheaper interest cars, better deals on credit cards. Credit scores can even influence your employment and being able to rent a house or apartment.

Keeping an eye on your credit report ensures that you know if someone has stolen your identity, or when you are charged for something that you did not buy.

Answer 3

It makes a big difference in the way lenders look at you. You would think that if you had "bad" credit they would give you a LOWER interest rate to make it easier for you to pay your bills, but it is the opposite. You get a HIGHER interest rate, so your bills are bigger.

It is also important to check your credit report to make sure no one has obtained credit under your name falsely. It would reflect upon you. If you see something on the report that doesn't belong there, you can take action to get it corrected.

But remember, you don't have to pay for a credit report. You are allowed to get one free report from each of the 3 credit reporting agencies per year. However, this doesn't include your credit SCORE.

Answer 4

Your credit score determines the amount of risk the bank is willing to take on you. The higher the score, the lower the risk and the lower the interest rate you should get. Its like being rewarded for being responsible and paying you bills on time. Reviewing your credit score occasionally lets you make sure that nobody is using your credit but you. In these days of identity theft, it is a good idea to keep an eye on it.

Answer 5

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RE :Why is important to know your credit report?
I constantly listen to adds and recommendations that knowing your credit report score will help you get a better loan or deal, with less interests. Isn't it enough to know that you have bad, ok or excellent credit? Do you actually go to the bank or the car dealer and say something like: "Hey, my credit score is 740, give me a good deal!"

I'm from another country and I'm trying to build my credit history, so any help is welcomed. Thanks!.
Follow 9 answers

Answer 6

Because if you don't have a good credit score, companies are more reluctant to give you good deals. See if you have a better score, the companies can expect a full payment on time, and they will charge you less and give you more financial freedom. If they see your credit score is less than normal or bad, they will try to put a leash on you so they don't get ripped off, or they will avoid making a deal with you altogether. If they see you don't pay your bills on time and that you haven't paid some things off, they won't give you so much freedom because they want their money.
Knowing your score won't give you a good deal. Maintaning your score and keeping false information off of it will.
And no, they don't expect you to walk in and say it. In fact they will most likely check it without you knowing.

Answer 7

With identity theft growing by leaps and bounds, you need to check your credit report as often as you can to make sure nobody's stolen your identity and racked up lots of debt in your name!

If you don't get it taken care of, you could end up owing or at least have to suffer while it gets cleared up. It could take months or years to do so.

Good luck to you.

Answer 8

When you try to get credit, and find out too late your ident was stolden, you will never have to ask again! CHECK OUT YOUR CREDIT!!!!!

Answer 9

Why is important to know your credit report?

T.R.Y
T.H.I.S.
S.I.T.E
W.H.E.R.E
Y.O.U
C.A.N
F.I.N.D
T.H.E
B.E.S.T
S.O.L.U.T.I.O.N
F.O.R
Y.O.U

Answer 10

It isn't. Those ads are full of crap.