Understanding the Importance of a Credit Report
We have all made mistakes with our money. Perhaps you have overdrawn on your account one too many times; perhaps you have maxed out your credit card, yet again, or perhaps you have missed a mortgage payment (or two). Unfortunately, these past financial mistakes are a part of your life and, with a credit check, can be accessed by potential employers, credit bureaus and landlords.The bad news for those with poor credit reports is that your financial faux pas of the past could cost you a lot more than high interest and late fees. The good news for those with a good credit report is that your past financial history can help you when on the hunt for a new career or new home. And, the great news for landlords and tenants is that a credit report check can act as a stress-free way to ensure you are making the right choice about your applicant.
What is a Credit Report?
Your credit report is the gateway to your financial past and will include information such as names, contact details, social security number, birth date and previous employment information. Credit reports also include payment history and information including child support, credit limits, account balances, credit card debt, outstanding or late payments, tax liens, bankruptcies and overdrawn accounts. So why is this information important? Essentially, your credit report will not only reveal your financial past in all its glory, but it can also dictate the success of your financial future.Your credit report will give you a credit score, also known as a FICO score, based on a number between 150 and 900. In general, anything above 700 is considered a good credit score with the average American credit score being 679. Although, essentially this is only a number, the credit score can have a positive or negative impact on your ability to obtain favorable loans and interest rates.
There are a number of different times when a credit report check will be performed. You can expect landlords and employers to check your credit report when determining whether or not you are a good fit for their property or business. Many schools, car insurance companies and credit bureaus will look at your credit report when determining the best loan option and policy for your needs.
The Importance of a Credit Report Check
You really cannot judge a book by its cover, and, although you also should not evaluate someone simply on their credit report, you will get a better indication of their financial history by performing a simple credit report check.Landlords can benefit from knowing the truth about a future tenant in regards to their financial history. Although a poor credit score does not necessarily mean the tenant will not make the rent every month, it can provide you with a more accurate picture of who you are dealing with. Furthermore, an excellent credit report can provide you with that added sense of relief that you are making the right decision when it comes to your choice in tenant.
Employers can also benefit greatly from an employment credit report. In addition to an interview and obtaining valuable references, it is a good idea to know what financial obstacles your potential employee has faced in his past. Why? For one, employee theft is continuously on the rise and, in today's day and age, you really cannot be too careful. Furthermore, a credit report will provide you with a more accurate description of how your potential employee operates on a day to day basis. Someone who pays their Visa bill off in full every month and has never missed a mortgage payment is more likely to remain responsible and organized on the job front as well. However, someone who is consistently missing mortgage payments may also consistently show up late for work or miss it all together. Although there is no way to tell if a person will be a good employee based only on their credit report, this outlet of information can help narrow down your employee selection and better your odds of finding that perfect staff member.
If you need to access a credit report, then you've come to the right place. We can provide you with quick credit report checks without the hassle, the monthly fees or the annoying signup requirements. You can really never be too careful when it comes to hiring someone or renting an apartment, especially during today's tough financial times. The last thing you want is to have a faulty employee on your books or a poor tenant that has all the excuses in the book for missing his monthly payments. The best way to avoid these situations and to know that you have made the right decision is to perform a credit report check. Our services provide you not only with a hassle-free way to obtain important credit information, but also peace of mind in knowing you have made the right decision in your applicant selection.
