Types Of Free Credit Checks

The importance of sound credit can’t be ignored today. No matter whether you apply for a credit card or loan, your credit standing determines the rates of interest on loans and offers available to you. This is why it is necessary to pay attention to your credit and maintain a desirable score. While many services offer reports on credit rating, they charge you some money. However, you can definitely get free credit checks. If you need help in this respect, read below.

What is a credit report?

It is a detailed report of a person’s credit history prepared by a credit bureau. The bureaus create credit reports on the basis of information collected on a person’s credit. Lenders use this report as well as other info to determine the creditworthiness of a loan applicant.

Benefits of credit checks

There are many reasons why you should check your credit report. First of all, credit bureaus make mistakes when preparing reports. One mistake in your report is enough to result in a rejection or costly loan by the loan provider. By asking the agencies to fix errors, you stand a chance of getting approved for an affordable deal.

Secondly, credit reports could reveal fraud. Financial frauds can take various forms, most of which will show up in your report before elsewhere. The warning sign could be related to opening of an unknown account in your name, a collections account appearing unexpectedly or a bankruptcy filing manifesting in your public records.

By checking your credit report, you can identify any such frauds and bring them to the notice of relevant authorities. Thirdly, checking your report lets you know what you are doing right as well as areas where you need improvement. Accordingly, you can take appropriate steps for improvement and increase your credit rating.

Free credit check options

When it relates to checking your credit rating, you have various options. A number of sites and firms provide reports. However, these firms charge you a sum for their services. Here are handy options to avail your report for free.

Surfing annualcreditreport.com (the government-sponsored site) is a great way to obtain a copy of your report from major rating agencies. You can get the copy once every 12 months. You may also use a toll-free number as mentioned by the government authorities for your report.

Here, you can seek info over the phone after providing details such as your name, address, social security number and date of birth. Some private services such as WalletHub also offer free reports. After getting and checking the report from any of the methods, you can ask the agencies to rectify the mistakes that you find.

Bottom line

Having a good score is necessary for having access to economical loan and credit card deals. Also, great credit impacts your finances positively in all spheres of life. While you may take the necessary steps to maintain a desirable score, you ought to check your report periodically. Simply check the above methods to access free credit checks. With regular checking and inspection, you can ensure an error-free report that can work in your favor while obtaining loans and other credit.