We talk a lot about credit here on Talking Cents. And for good reason; your credit is an important financial indicator of your financial health. So, any help we can offer to help you maximize your credit knowledge, as well as your credit reports & scores, is critical. This will, in turn, put your overall debt management efforts in perspective. Let’s dig into the importance of credit reports & scores.
ACCC has the scoop on credit reports.
The Importance of Credit Reports & Scores
What is a Credit Report?
To keep it simple, a credit report may include:
- A list of companies that have given the individual credit or loans
- The total amount for each loan or credit limit for each credit card
- How often a consumer pays credit or loans on time, and the amount paid
- Companies that have asked to see your credit report within a certain time period
- Personal address(es) and/or employers
- Other details of the public record
11 Times Your Credit Report May Be Checked
Now that we understand credit reports better, let’s see who can check that credit report! Generally, your credit report will only be checked if you, the consumer, are seeking some type of loan or financial assistance, or a situation where an entity wants to check your reliability. Here are 11 examples:
- Creditors
- Mortgage Lenders
- Landlords
- Utility companies
- Student loan lenders
- Insurance companies
- Employers
- Government agencies
- Collection agencies
- Judgment creditors
- Entities that have a court order
What About Credit Scores?
Let’s not forget about the importance of credit scores! We’ve seen a number of instances where a person or entity can pull your credit report, but who is able to pull your credit score?
- Banks
- Credit Card Companies
- Auto Dealers
- Retail Stores
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.
