Do you know your credit rating?

Do you know what your credit rating is? Have you ever asked for a report of your credit history? As everyone knows, credit is everything in the US. As soon as a person is born and assigned a social security number, a file is established where all financial activity related to the person is added. Credit card applications, student loan applications, car loans, etc are all reported and a score is given to each person for their credit worthiness.

Having a good credit report becomes especially important when you are making a major purchase, such as a car or a house, where your details will be checked before the transaction takes place. I have even had my credit checked for renting an apartment in Providence, RI. Checking a person's credit history is the established practice for all sales at all car dealerships, unless a buyer is paying only in cash.

A credit report has information all bank accounts in your name, credit cards, outstanding credit, salary, history of paying bills, rent, utility bills etc. In essence, it is your financial history and any negative aspect could have long lasting effects, such as high interest rates for a home loan or credit card, lower limits etc. It is a good idea to know what exactly your credit report says about you as in many cases it can even help to Identify Theft.

To see what your credit report says about you, all it takes is a small fee to one of the credit reporting agencies. The US Federal government has made credit reports free in certain states, to increase awareness about their importance. Annual credit reports are available for free in 12 western states, from all three of the credit reporting agencies, TransUnion, Experian and Equifax.

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