Are you asking yourself “How do I check my credit rating?” Your credit score, and your credit rating, are the most important things you need to keep on top of. Your credit rating is based on the three separate credit reporting agencies: Experian, Trans Union, and Equifax. Each of these three credit report companies rank your overall credit based on: your credit history, your loan history, and your payment history on debts (credit car, student loan payments, car payments, etc.).
Each year, you can request a free credit report from each of the three agencies. It is key for you, the consumer to do this. Making sure your credit reports are clean from errors and keeping up on your credit rating is essential in today’s economy. Your credit score determines everything that a consumer can and cannot do. With a poor credit score you will not be able to: take out a loan, get a line of credit, obtain a mortgage on a home, get student loans for school, or get a loan to purchase a vehicle. It is vital to check your three reports each year to make sure they are error free, and you must make sure to keep up on all your payments with creditors to help increase these scores.
Your credit rating is essential for everything you do. Creditors do not trust you and are unwilling to offer you a loan if required, and you will have difficulties making any purchase with any form of payment other than cash if your credit score is low. Keeping your credit rating high and clean are very easy to do for consumers.
The first thing is to make sure you keep up on payments. For all your credit cards, loans, mortgages, all debts you have, make sure to pay them on time, and at least pay the minimum amount due each month. If possible, pay a bit more than the minimum each month, this will help improve your credit rating, and will also get you out of those high interest credit card rates quicker. If you are unable to make payments for any reason, make sure to call that creditor at least ten days prior to when the payment is due. This will show a good faith effort on your behalf, it shows that you are not just ignoring the payment, and it will make the creditor consider giving you an extension or offering you a lower payment rate until you are able to get things back in order.
Staying on top of your credit rating is of utmost importance for all consumers. Making sure your credit scores are free of errors, and making sure you make all payments to creditors, ensures a great credit rating and shows other (probable future lenders) that you are a good consumer to deal with.