You can now request access to your credit records free of charge once a year. If you feel that this is wasting your time, then think again. Your credit record is like your financial ID because it gives creditors an in-depth approach into our debt profile. There are many reasons why your credit check is so significant.
10 Reasons why a credit check is important:
- A poor credit record can trip you up if you need to apply for a job or you need a loan.
- There might be problems with your credit record you are not aware of such as fraud or an error.
- If your name is listed with a credit bureau it does not mean that you have a poor credit profile – it just means that the bureau is used by a credit provider with whom you have an account.
- Credit Bureaus are competitive and do not necessarily all have the same information on you so it is important to contact one of the large, established bureaus such as TransUnion or Experian to get in-depth proof of your credit.
- Credit providers share information about consumers’ trade patterns and provide standard information such as credit limits, outstanding balances and monthly expenditure to credit bureaus.
- A good credit record will aid in helping you bargain for favourable interest rates when you want to buy property or a car.
- A good credit record is imperative as it is evidence that you are a high-quality debtor and can administer your finances well.
- Building a superior credit record is easier than restoring a poor one.
- Keep your credit records clean by living within your means and paying all your accounts on time.
- Under the National Credit Act potential credit providers must rate you according to your capability of making repayments on a new loan.
It is vital to regularly do a credit check – it is, after all, your monetary Identity.