Thursday, August 21, 2008

People who Check your Credit

You might want know who check your credit. According to the finance magazine that I was reading earlier, your credit score is basically used to predict the possibility that you won't pay your bills.

1. Lenders. This group is the one most people associate with their credit score. Having a good rating can help you qualify for the best rates on a mortgage, car loan, credit card and even a small business loan if you've got that entrepreneurial spirit. A nonexistent score can make it impossible for you to qualify for a loan or credit card at all.

2. Insurers or your insurance company. Majority of auto insurance companies use our credit score when determining our rates, and the practice is also common among home insurers.

3. Landlords- When we rent an apartment we may need a credit score. Landlords view our credit rating as a measure of our responsibility to pay bills on time. If the rating is below par or you don't have a credit score yet, you may have to find a friend or relative to co-sign your lease, or you could be required to pay a higher rent or security deposit.

4. Employers. When you're applying for a job, potential employers can pull your credit report as long as they notify you first. But not all employers need your credit scoreWhy? Bad credit can be a signal of irresponsibility, or employers might be worried you'll spend more time fretting about your financial woes than concentrating on the job.

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