There's more to a credit score than getting approved for a loan. Having a good credit report used to be related solely to financial matters, such as getting approved for credit cards, car loans, and mortgages. Today, your credit score can impact several other things, including your premiums for car insurance and your suitability for certain jobs. Checking Your Credit Score Knowing what's in your credit report and checking your credit score is very important. Even more important, is understanding what the information in your credit report means to you. You can get credit scores and reports by requesting them from the three national credit bureaus (Equifax, Experian, and TransUnion). Inside your credit report you will see a history of your credit accounts and other credit-related activities. If there are any late payments, they will appear in your credit report. Also, your credit report will show how much money you have borrowed, how many credit cards and other loans you have, and if you have defaulted on any loans. This information is all used to calculate your overall credit score. Employment Credit Check One reality that today's job seeker needs to realize is that what affects your credit score can also affect your employment prospects. Employers are looking for people who are responsible and who can manage their personal lives. If they can do that, then they are also more likely to be responsible employees. Many employers now conduct background checks, including police reports and credit checks. Employers can't check your credit history without your written permission. However, if you refuse to let them access your credit report, they may wonder what's in your report that you are trying to hide. Your credit score and job hunting efforts are so closely tied together that you really need to take some time to review your credit report and see what you might be able to do to improve your overall credit score. Managing Your Credit Report There are several things you should know that can help improve your credit score. The more knowledgeable you are about your credit report, the better your chances are of getting a good loan and a great job. Here are just a few of the important things you should know about.
- You can correct errors. The first thing you should do upon receiving your credit report is to verify that the information it contains is correct. Although the credit bureaus take great pains to provide accurate information, mistakes do happen, occasionally. If you find errors, you can address those with the credit bureau who will research them and take appropriate action.
- Too much credit hurts. Having several credit cards can hurt your overall score. You're better off to have just one or two cards with good payment histories rather than five or six. This goes for auto loans as well. You're better off to have just one car loan. If you need a second car, consider buying a second-hand car that you can pay for with cash.
- Don't use your full line of credit. Just because you have a high credit limit on a card or revolving account doesn't mean that you should use all of it. Actually, most lenders prefer to see credit cards using only 30 to 40 percent of their available credit limit.
- Monitor your credit report frequently. Since your credit report changes frequently and is so important to potential employment opportunities, you should get credit checks throughout the year. In fact, you can hire a credit-monitoring agency to keep an eye on your credit report for you.
Your credit score is tremendously important and should never be ignored. The information contained in that report can have far reaching consequences for your credit options, insurance rates, and employment. Recent reports have even shown that your credit score can even impact your dating life. So understanding your credit report and checking it frequently is one of the most important things you can do.
Related Articles -
what affects your credit score, credit score andjob,
|