A free credit report and score is now available online and everyone should take advantage of this service. With identity theft being a modern day problem it is especially important to be able to see the credit information that is recorded about you. From consulting this report any misuse of your credit card or errors in information can be further investigated. The report will usually give you a credit rating that may include a score. From this score you are able to see how your creditworthiness stands. If you have always repaid in full and on time in the past then you should score above average and be eligible for more credit.
If you have a bad credit rating and score then you can see what is causing it and do something constructive to reduce some of your debts. Often a bad score can be given unnecessarily due to a mistake in the data. If this is identified it can then be amended accordingly and so improve a low score.
The scores and other information obtained from a credit report help lenders to decide if it will be statistically viable for them to offer you finance. A good or average score will improve the chances of acceptance as it is seen as less of a risk. Repayment rates and periods can also be decided based on the credit score and other personal information. If you seek credit then it is best to obtain a free credit report score yourself beforehand. This is because is you personally request your score it will not make any difference to your score, however if a bank or credit company do the check then this can adversely affect your score. It will also be recorded as a search and a lot of searches on your history are seen as an unnecessary negative addition.
There are many ways to inspect your credit report at no cost and you would be wise to take advantage of these services. Many people find that a simple error has prevented them from obtaining credit before. If you are refused credit anywhere then they are not obliged to tell you the reason why. Their advice is usually to get a copy of your credit history and score so you can determine why they consider you too much of a liability. It would be useful whatever financial position you find yourself in to know where you stand with regard to credit.