October 5, 2011
The Importance Of Using Credit Monitoring To Your Financial Advantage
Credit monitoring is conducted by credit reference agencies who compile information about you pertaining to your financial history and current standing. The agencies are licensed to gather this information from a variety of sources.
Once compiled, the reference agencies make the information available to other organizations who may be interested such as banks and other lending entities. Before a lender agrees to grant a loan they will check with the reference agency in order to establish your risk potential. This applies to every type of financial product including mortgage lenders, car finance firms and mobile phone network providers. A reference agency check will be run on you before you can have access to any of these facilities.
All basic personal details are included in the reports supplied by the reference agencies. This is includes full name and full address and your current marital status. If you have had any defaults in the past it will show up in the report as will any prior court judgements and any bankruptcy details.
Since the information held with the reference agencies is so crucial, there are obvious reasons why you might want to know exactly what they have about you. Many people have been denied finance facilities without knowing the reason why. There are therefore benefits to knowing what is held about you before you apply for anything.
Unbeknown to many, declined applications for finance is but another negative mark against you. If your request for finance is turned down, the refusal itself worsens your score. Scores are what is used to determine creditworthiness. The highest scores are deemed to be the least risky. People who have an idea of their own ratings are in a better position to improve it if that is what is needed.
The unfortunate truth is that the records held about you are not always a hundred percent accurate. There have been instances where people have been refused finance based on erroneous information held on file. If you know what is held, then you are in a stronger position to challenge mistakes.
Credit monitoring is something that you should do for yourself as well as it is being done on you by others all the time. Fortunately, there are organisations that exist to help you find out what is held about you.
Click here for more information on Credit Monitoring and Credit Score and Free Credit Report
Filed by neville1way at 1:21 am under Uncategorized
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