How important is a credit score? Well as you will come to understand credit score is what determines your credit worthiness, Its more than important for one to always have a good credit report, bad credit report will give you problems while trying to secure for credit advances.
Credit report scores are not only used by financial institution alone, its becoming norm for any person or institution wishing to deal with a client to inquire for a credit report ratings. In today's harsh economic times no one is willing to gamble In any way with his property or Money in that matter, Consumer credit institution are playing a vital role in issuing these information to interested parties. For an institution to access your credit ratings all they have to do is t raise an inquiry, with the major consumer credit report agencies for a fee, and all your information will be at their disposal. Consumer report Agencies normally get new updates of consumers from Banks, Insurance companies, Landlord etc, the exchange of consumer information between the consumer agency and interested parties is what the agency use to keep their database updated. Banks will report on your credit and loan management, this is if you are repaying your loans promptly or not, Insurance will report if you are paying your premiums or not all these combined with factors is what is used to determine your overall credit score.
So next time you apply for credit and your refused approval them, it could bet that your credit ratings played a major role in the decline, credit score will also determine if you get mortgage for a house. So as you read you understand that your credit score report is central in your financial well being.
One liable to view his credit score either for a fee or by visiting the only government authorized website for a free annual report ratings, there is provision to dispute any errors on the report, errors may be as small as wrong spelling of your name, a typing error all so, but all this showing on this vital document could make or break your credit score.
When requesting for your report, its normally advisable to send requests to all major consumer credit reporting companies since information maybe incomplete on one company but complete on the other, your score ratings will be indicated with 3 numeric numbers the scores of 500 or below are considered to be poor while those that are above 500 to 900 are considered to be good or even excellent. However attain rates of above 900 is almost next to impossible. Keep and maintain good credit ratings by managing your credit and loan advances well, poor credit score can be mend and if only involved parties employ disciplined ways to approach their credit.