Every service institution in the current times is prompted to check a client credit background, many people may not know why they have been denied a service but as it will later come to learn maybe the company you approached did a credit background on you and that could be the sole reason you were turned down in the first place.
Its normal even for informal social community to want to check someone's past behavior before they may include him/ her in there social setting, same applies and at a much greater degree with major institution, for example banks, credit union, insurance, in fact landlords also have there way of checking clients background through the rentals check credit bureau. So there you are if you messing around or maybe mishandling someone's property then there is a bureau a landlord can report you to, though you may not have difficulties at first but latter you will have if your credit scores become unbearable.
There three major reporting companies that normally receive and store consumer credit reports, these are, Equifax, Experian, and TransUnion, these companies are fed with customers information from banks, insurance, credit unions, loan companies, the same companies will later in the future approach these reporting company if they want to run a credit background on a client.
All institution will look for positive credit rating score, these will determine what service they will offer and what they will charge, for instance a bank will run a credit background on you, then use it to determine if they should give you credit, and at what interest rate they are willing to charge.
Its more than crucial for one to have positive credit ratings, credit ratings are rated by a three digit number, credit scores of 500 and below normally indicated poor ratings, those of 501 to 900 indicate good ratings, damaged credit scores can be repaired, all one needs is to change s few things on how to manage his credit, for example if you are for some reason pay your loan or credit late, then you should come up with ways to rectify these.
Credit interest rate is what gets people in trouble most time, interest rate do compound very fast, so one needs to manage these by paying promptly.
One can get his own credit report and do his own credit background this simply done by raising a request to the reporting company, you are entitled to one free credit report view, go through it, if it has some errors, you have a right to dispute, write to the reporting company and attach a copy of the report, remember to highlight what you dispute.
The reporting company will definitely rectify these if there is a sure error, you will have a new copy of free report and a written report about the findings.