Know your Credit RatingDo you know your creditworthiness?
It is one of the most important things that creditors do when judging whether to give you credit, a home loan or even a new telephone deal because it will serve as a general image of your overall economic good health as well as soundness. "Catherine Morgan, a finance specialist and Money Panel founding member, said, "Most folks think that creditworthiness is only practical when they take out a loan, but they may not really know how it can affect many other areas.
"Knowing your credit rating can give you an idea of your own finances and help get you back in the driver's seat, as it were, even if you think you don't have a good ratio to your cash or don't manage it very well. "Without wanting to ring like a moaning parental, it's quite important since, yes, it can affect whether you get a home loan, but it can also affect your capacity to get the cheapest APR (annual interest on loans ) or even your entitlement to other finance items.
You can also have your scores verified for certain orders. More and more recruiters are conducting credit assessments on candidates, particularly in the financial, health and technical sectors, according to recruiting firms. Therefore, it is good to be clear where you are with your scores before these tests are performed. The landlord can also carry out a credit assessment of the tenant - although they need your prior consent in writing - and if your credit rating is bad, they can ask you for a large down payment.
"Creditors value your credit," said Tina Weeks, an impartial finance consultant and founding partner of Serenity Group. "It is in your interest if the creditor can see that you are administering any credit that you really have well. What can you do to verify it? You can use a free CreditWise from Capital One to verify your creditworthiness.
When you have had your early bird espresso, the work will be over and your credit rating will be in front of you. In order to log in, you must provide some biographical information such as your name and date of birth and heypresto, something "magic" happens - well, not really - and your scores appear on a colorful scale, without math.
You also get more than just your credit rating. You will be able to see your full credit reports showing exactly what is affecting your credit rating - for better or worst - so you can begin to take over. You will be scored 700 points (using Equifax data) - the higher the number, the better the scores - and the meter will turn from reds to greens to orange based on the level of your scores.
When your scores move towards the bottom of the scoreboard, don't worry. On the one hand, you can increase your scores over the course of your life, and reviewing them earlier than later means that more of your side remains to take charge of them. Recently, if you have requested a loan, you may find that it lowers your credit rating for a certain amount of your life, so it is a good thing to do so only when you really need it.
"While it may take a while for you to get your scores up, it can be corrected," saideeks. "More than six years ago, your finance story tends to be erased from your credit rating. "lf the scores are good, well done. Earn points by looking at what's good for you, and if you take notice of what CreditWise is suggesting, hold back and observe what you need to, and continue to administer all the loans you have.
Remember that your credit rating is not static: it will evolve over a period of years, and since CreditWise is free, you can review it as often as you like. It is advisable to use it on a month-to-month basis as it can often alter your credit rating and will help you keep track.
When you are connected to someone else somehow physically, e.g. through a shared bank or if you are considering making a shared pledge such as a loan, it is important to realize that you have what is known as a "financial association". "Morgan said, "Just be conscious that if you are sharing bank balances or loans with someone else, it is a shared ownership and both can influence your credit," he said.
It is important to speak frankly about a long-term obligation and make sure that all common monetary obligations are well administered, because even if you shut down this common commodity or bank after a year, the so-called "footprint" in your credit record can last a little longer. "is to ask them, "What is your story about cash?
" It is also important to know that reviewing your scores has no negative effect and using CreditWise does not charge you a cent. Though your credit rating may not seem pertinent at the moment, it is a move in the right directions when you begin to fully appreciate and administer it. This will give you security so that when you need it, you already know where you are with your credit rating.