Check Credit History
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Check credit history to monitor your financial health. One reason to check credit history may be to learn how to increase credit score. It is imperative to do this periodically to ensure proper history and correct any errors. When applying for rent, a mortgage, or any other type of financing improper financial history can cause lots of problems for honest people.
When a person wants to ensure accuracy, they can find out personal historical payment data, if there are any lawsuits or liens, or if there are any court judgments on file. All these factors combined figure into a risk rating that future lenders will use. Proverbs 24:3 says "Through wisdom is a house builded; and by understanding it is established." This verse can be applied to a physical house or our financial house. It is important to have a good foundation and keep up good maintenance in order to prevent decay.
Basically, anyone can check credit history if they can demonstrate just cause for doing so. However, typically it is done by potential landlords, insurance companies, financial institutions, lending companies, mortgage or loan lenders and legal entities. Therefore, it is best to know first what they will be seeing and by how they will be judging financial health.
There are many different companies to check credit with. However, Equifax, Experian or TransUnion are the "big 3". These companies may offer to check credit once free per year, and sometimes offer a free report if denied borrowing privileges. Finding out this information is as easy as checking their websites or placing a phone call. Otherwise, these companies charge a minimal fee to check credit history. Most often, these companies will require a full name, addresses for the past five years, phone and social security number (as well as the name and social security number of any spouse), as well as proof of current address. Asking for this information ensures that this personal financial information is getting to the right person.
It is important to make sure financial health is good. Sometimes a simple error can deny better interest rates, a higher loan or deny credit altogether. Therefore, make sure to check credit periodically to insure accuracy. Then, when applying for a loan, accuracy will be assured. Financial burden is hard to handle, but what it is even worse when there are clerical errors or forgotten debts denying future credit.
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