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Reasons Why You Must Have Your Credit Report

By Ruth Racey
Published: Sunday, December 20th, 2009

One of the most important documents that you must grab a copy of is your credit report. This is true for all consumers who primarily use credit cards in their everyday expenditures. Remember that your report actually contains a ton of relevant information regarding your credit account. In this case, you can actually see on your credit report on whether your credit is still healthy or not, as well as gauging the most probable credit rating that you will receive from the three largest credit agencies. 

However, not all people are aware of what exactly is their credit report all about. Basically, a credit report is a report wherein you will see all the transactions that you made using your credit card, for the past seven years. In addition to this, your report also includes all the liens and other legal matters that involved you and your credit account, at least for the last 10 years. In this case, monitoring your credit and your finances requires paying a close attention to your report. Here then are some additional reasons why you must get a copy of your credit report: 

  • It helps you manage your personal finances
    Whenever you are using your credit card, it is very true that you already have the capability to spend conveniently, even more than what you actually have, or more than what you can actually pay for. This situation is the reason why most consumers actually fall into the trap of overspending and mismanaging their respective finances.

    In this case, it is important for you to take note that your credit report actually contains information that shows how you’ve managed your finances. Things such as your credit to debt ratio, your outstanding balance, and whether you overspent or not, are all reflected in your report. Therefore, looking at your report guides you on how to manage your finances. 

  • You will understand better why your loan application may have been turned down or approved
    Whenever your lender is deciding whether to grant you a loan or not, most likely, they would first consult how credit worthy you are. In this case, most of the data where your credit rating is derived from can be seen in your report. Therefore, by looking at your report, you will actually understand better why your loan application was approved or not. In this case, looking at your credit report effectively shows the status of your financial sources.

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