No matter where you turn for a loan, your credit score will be the single largest factor that will affect your loan. Your credit score is the bedrock of your financial freedom, and being proactive about monitoring it can come with many benefits.
Your credit score is calculated by the three credit bureaus: Experian, Equifax, and TransUnion. Essentially, the three credit bureaus take the data on your credit report (such as payment history, credit utilization, etc.) and give you a credit score. Almost each and every score you have from the 3 credit bureaus will be different.
Your credit score doesn’t just help you get approved for loans. Credit scores can affect your auto insurance rates, whether or not you qualify to rent an apartment, and even get utility services such as electricity, so it’s important to be vigilant and keep an open eye on your credit score.
Here is a list of benefits from checking your credit score and reports regularly:
Its 100% Free
Checking your credit and your credit report will not hurt your score whatsoever. Feel free to check it every hour, or every minute if you’d like, as it will have 0 impact on your score, unlike what many consumers believe to be true.
You are also entitled to receive your credit report and 3 credit scores for free, once per year at www.annualcreditreport.com. This government mandated website was established to help promote transparency between the credit bureaus and consumers.
Some reports show that nearly one in five Americans have an error on their credit reports. This can be due to name confusion and clerical errors from the 3 big credit bureaus.
If you check your credit report and find an error, you have the right to dispute the information, leading to a mandatory investigation by the 3 credit bureaus. Once the errors are removed, your score will return to where it was prior to the error.
Spot Identity Theft
Regularly monitoring your credit score and reports can also help you spot identity theft early on. If you are analyzing your report and score and see an unrecognized account opened in your name, call that lender immediately.
You can also enroll in a credit monitoring service that will help you spot any signs of identity theft that may occur.
If you are working hard on improving your credit but are still in need of an auto loan, CrediReady offers one of the largest databases that connects dealerships, lenders, and buyers in all credit situations. Take a few moments to fill out our free and confidential loan search form online and we will match you with a dealership in your local area that can meet your auto financing needs.