A credit report is a summary of your financial activities during a certain period, including how you spend your money during the year, your outstanding loans, credit card debt, and other financial matters. The data is being provided to the CRAs: Equifax, Experian and TransUnion, by the companies who have granted you the credit. Every individual is given a chance to order a one time report at least once a year for free. But why is there really a need for you to get your own report? There are a lot of reasons.
One good reason is for you to have knowledge on your financial standing, your credit score in particular. As you acquire more and more outstanding loans, your credit score gets lower and your chance of being approved in future loans and other financial movements is greatly reduced. Credit reports will, at least, help you improve your credit score.
Credit report is very important in various transactions. It is one of the bases for loan approvals, such as home and auto loans, and credit card applications. It is also a basis for your credibility especially when you're applying for a certain job position. And when you're trying to rent an apartment, landlords or owners would ask for your credit report and see if you have the capability of paying monthly rent.
With such report, you can check and monitor your financial activities and see how accurate they are. You can immediately report any discrepancies and dispute wrong information on your report. It's also easy to tell if you have been defrauded or if someone has tried to phish some of your financial information.
Credit reports allow you to monitor your financial activities and see where your credit really stands. It also allows you to check for any significant changes and see whether these changes are brought about by you or not.
For these reasons, acquiring your own report is really a must. Get your own report before you start on any financial transactions, such as credit card and loan applications. With one-time credit reports, you are, somehow, able to evaluate yourself and see whether your credit score meets the standards of the financial institution you're trying to start business with.