Everyone is aware that potential lenders will need to check your credit score before you are approved for a loan. Often times, employers and landlords will have to check your credit score before you are hired for a job or approved to move into an apartment. Listed below are seven of those reasons.
Preparing to Purchase a House or Car
Before accepting your application for a new house or car, lenders will have to check your credit score. What is found in your credit score will have a significant impact on the amount of your interest rate. If you check your credit report before you apply for the loan, you can correct any errors that you may find.
A New Apartment
Although not all landlords will require a credit check, a credit check is required by many of them today. If your score is lower than required, then you will not be able to get the apartment. If you are allowed to get the apartment, then the landlord may require a large security deposit.
Planning a Major Purchase
If you are planning a major home renovation or other major purchase that will require financing, then you will want to check your credit report. A bad credit report may lead to your not being able to get the amount needed for your purchase.
Getting a New Job
When you are getting ready for a new job, your potential employer may check your credit. If you are trying to get a job that requires you to handle money, then you will not be able to get it with a low credit score. Fixing any issues before applying for the job will increase your chances of having the required credit score to get the position.
Getting Ready to Refinance
There are times in which you will want to refinance a loan. If so, the lender will check your credit score. If there are negative changes to your credit, then you will not be approved for the lower interest rate.
You See Something Suspicious
Many people often have their identities stolen, which can lead to credit inquiries in which you were not aware. Therefore, it is important to check your credit often to see if there is any suspicious activity on your credit report.
It Has Been a Long Time
If you have not checked your credit in a long time, it is important to do so. You are given three free credit reports a year, so by taking advantage of those, you will always have a general idea of your credit report.
A credit report is very important. Therefore, it is important to always have an idea of how yours looks.