Credit Rating And Their Significance

All US citizens are entitled to receive a copy of their credit score and report every year. All legal residents have this right. This is as mandated by the Federal Fair Credit Reporting Act. This act has made this mandatory to ensure that citizens are informed about the kind of lines of credit they have taken up and to avoid cases of fraud and identity theft. Personal debts also have a reflection on the purchasing power of an individual. The reports are also made available at the annual credit report website.

The importance of a credit report

When one is taking up loans from accredited money lenders they need to know the credit rating they have. Most financial organizations check the credit rating and score of an applicant before they consider the application or approve the loan. The rating as well as the score allows a financial institution to understand the financial state of affairs of an applicant. Also, these facts help a person to stay in control of their debts and finances.

Keeping check of identity theft possibilities

The credit rating and score should be checked from time to time for other reasons as well. You might find reflections of certain transactions that were not done by you. In this day and age of online transactions, credit card details are often stolen and can be used by others. For that reason, one needs to check the financial transactions reflected in a credit report and be assured of the authenticity of the same before opting for a loan application from licensed money lenders.

Getting the credit report

The website of annual credit report is the best place to get the credit statement and score. The reports are generated by major credit rating agencies which track the spending and credit requirements taken up by registered or valid residents of the country. The score is arrived at accordingly. The reports are found by signing into this website. One can also seek a digital copy of the same. In order to seek corrections one needs to sign up for the paid services on the site.

Details required for obtaining a credit report

In order to get your hands on a free credit report, you would have to furnish certain details. The person’s name, date of birth, social security number, address and other details need to be provided. If the details are valid, one can get their report for free. There is an online form where one can post their queries as well. With these facilities the credit agencies help individuals to stay abreast of their credit status and to be able to monitor the kind of transactions one has done and to put a reign on spending which might be spinning out of control.