Free Credit Score and Report: Why It's Important to Have a Good Credit Score

Having a good credit report is essential because creditors rely on credit scores to ultimately decide whether or not to extend a line of credit, credit card offer or loan. What's more, employers often times use credit scores when deciding on job applicants. 

Free Experian Credit Report
Free TransUnion Credit Report

Who's Who in the Credit World?

Equifax, Experian, and TransUnion are the three major credit bureaus that collect and compile consumers’ credit history.  Consumers need to understand what information are in their credit reports, how it is used to make decisions that affect their everyday lives, and how to take control of what information get reported to the credit agencies. As a general rule of thumb, if you pay your bills on time and in full, you probably have good credit. If you have late payments, bill that have gone to collection, you have declared bankruptcy or liens have been filed against you, then your credit probably isn't in great shape. But understanding what's involved with a credit report is one of the first steps to regaining financial stability.

How to Score Big on your Credit Report

One of the best ways to acheive and keep a good credit score is to simply pay your bills on time. Other ways to improve your credit score are:

• Don't open and close too many credit card accounts
• Limit the number of inquiries into your credit account

Employers and Your Credit Score

Nowadays, it is not uncommon for employers to require applicants to sign a credit check release during application processing.  Good credit scores tend to indicate that an individual is responsible in paying their bills on time and more likely to be a productive, responsible employee. A good credit score may also offers hints that the employee would tend to behave ethically in the work place.  Employers use the credit report to assess the employee risks and to determine how the potential employee may affect the bottom line of the organization.

Creditors and Your Credit Score

Credit reports are widely utilized to determine the likelihood of consumers to pay back loans or credit debts.  Creditors like credit card companies and banks will use your credit score to decide:

• Whether to give you a lower interest rate
• Whether to offer you a line of credit for your home
• More...

Consumers with good credit have many more choices in terms of their loans and lines of credit, and generally get lower interest rates from credit providers.  Mortgage companies especially are more willing to grant a lower interest rate on home loan mortgage to those consumers with a good credit.  

Find out about your credit with an instant credit report.