Important, Why We Need to Know Credit Score

The credit institution gives you an idea of ​​how the Bank can see your financial footprint and will look at your credit history to see how much available credit you regularly use. Once you know your credit score, it is best to think of it as your financial footprint.

This is a guide used by lenders and banks to determine how likely you are to pay for loans and credit card balances. The higher your credit score, the more likely you will be approved for a loan or credit card, because the company sees you as a lower risk.


Why check credit scores?

credit scores?

Getting your credit score is like peering behind the scenes at what lenders know about you. Any potential issues can be seen before you make a credit application and, with proper financial knowledge, are handled early. This includes checking for signs of fraudulent activity, such as unlicensed loans and applications on your behalf, to ensure they do not damage your credit score.

Applying for a mortgage or loan without checking your credit score can result in a failed application and will even reduce your credit score because every time an application is made a hard search will appear on your credit report. So try to only apply for what qualifies you. Your credit score directly influences your digital credibility and loan potential, which in turn affects big moments in life, including applying for car loans, credit cards, and loans.

If you find a problem on your credit report, what should you do? Here are some things you can do:

Check Name

Sometimes thieves use abbreviated names for credit reporting instead of names you might know. Also, if it’s a member of a product, often they will be listed on your credit report under the name of the bank that issued the card, not the store.


Request Transaction Details

credit transaction

If you have searched for info on the user’s name and still don’t recognize it or you cannot recognize other details such as when the question occurred, contact the company to ask for more details. Use the contact number provided under the invoice receipt. If the number is not registered, the website for most companies has a “contact us” section.

Investigation can be an indicator of identity theft. Identity theft occurs when someone steals your identity to commit fraud. For more information about identity theft and steps you can take if you are a victim of identity theft.


Contact a credit reporting agency

credit reporting agency

If you still believe there is a problem, you can file a dispute with the credit reporting agency that provides a report where you identify the potential problem. The credit report contains information about your bill payment history, loans, current debt, and other financial information.

It’s important to make sure your credit report is accurate, because it can affect the accuracy of your credit score. You can have multiple credit scores, created by various companies or lenders who use their own credit rating systems such as Giant which will give you a real credit score, because credit reports and credit scores help lenders decide whether to give credit you or not or approve a loan, and determine what interest rates they will charge you.

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