You credit rating is what creditors use as an indicator of how likely you are to repay any loans that you have applied for. You score is generated using information from your credit profile.
Many people have never checked their credit report, only 36 % of Canadians report that they have checked their credit report sometime in their lives. More than 60% of Americans report checking their credit rating on a yearly basis. I think this has something to do with the fact that they have free access to this information online.
Your credit rating is the biggest thing that will dictate whether or not you will be able to buy a car, get a mortgage, and many other things. It’s one of the quickest ways of finding out how you are doing financially. Your credit report gives lenders a view of your history of borrowing and paying back money. It can make or break your chances of being approved for any loan.
Your credit repot is a list of information collected from various companies such as credit cards, banks, or financial institutions – who have lent money to you. These companies report information relating to the details of financial transactions with you. Even one late payment will be reported and will lower your chances or getting a mortgage, loan or credit card. Even landlords are checking credit reports so you may have a hard time renting a place with bad credit.
Your credit report will include a rating that lenders use to gauge the risk of lending money to you (to find out whether or not you will pay them back), as well as a list of credit cards and loans you have and the amount you owe on each one. It also shows whether or not you have any late payments or if your bills have gone to collections.
If you do have a bad credit rating, you will need to find out why your credit is damaged, fix it and begin the process of rebuilding your credit You may still be able to get a loan, or a mortgage, but you will pay a much higher price for it.