Law Articles
To search for a particular term please use the following search box.
Law Topics
Click on a Topic to see available articles for that topic.
- Accidents
- Administrative Law
- Admiralty Law
- Articles
- Banking
- Bankruptcy Law
- Canon Law
- Case Law
- Civil Law
- Civil Rights
- Class Action Lawsuits
- Commercial Law
- Common Law
- Comparative Law
- Constitutional Law
- Consumer Law
- Contracts
- Corporate Law
- Courts
- Criminal Law
- Cyber Law
- Dispute Resolution
- Employment Law
- Equity
- Evidence
- Family Law
- Fiduciary Law
- General Practice
- Government
- Health Law
- Immigration Law
- Insurance Law
- Intellectual Property
- International Law
- Jurisprudence
- Labor Law
- Law and Economics
- Maritime Law
- Military Law
- Natural Law
- Personal Injury Law
- Philosophy of Law
- Property Law
- Public Law
- Real Estate Law
- Social Security
- Space Law
- Statutory Law
- Tax Law
- Traffic Law
- Trusts and Estates
- Water Law
Return to Law Dictionary Index
5 Things How Credit Report Rating Can Save You From Fictitious Credits
by Khali S.
Let us see the bigger picture why there is a stirring need to check our credit report rating. To know the creditworthiness of an individual, lenders rely on credit report scoring or FICO scores. Credit report rating involves a predicative value that conveys to the lender whether said individual can pay on the time stipulated.
Why is there a need to check it? Here are the vital points why checking credit rating information is indispensable.
1. Credit reports acquaint people with the credit history of an individual, thus, neglect in checking it may mean obtaining new credit by giving the holder bad credit. If you have neglected your bills, defaults, mortgage inquiries and the likes, you can have access to them through your credit report.
2. Another factor is to avoid identity theft and bad credit report rating. Identity theft is an insidious crime which involves a person who assumes the true holder's name without the latter's knowledge in order to open new accounts, switch card statements and contract bad debts. Identity theft can put to risk your ability to obtain potential credit.
Another, if you have a very common name, chances are you may be sharing another person's name and age. The best way though to avoid these things to happen is to check your credit report scoring. If your record has been wrongfully opened and disclosed, a notation must be put into the report.
3. Checking is also done to preclude credit fraud. This happens when a person has gained access to your credit card or account number. Said abuse may result to higher interest rates imposed by creditors, or worst, to deny the loan. Credit report rating in general, helps the holder catch up with his account.
4. Checking is also done to boost the holder's confidence. With this, an individual may know whether he is worthy of the credit he is pursuing. One of the reasons why an individual is less confident to contract credits is poor credit rating report. This is mostly because of unpaid bills.
5. To err is human, that is a blatant fact. Moreover, there can be inaccuracies involving late payments, mixed data and payments not credited to your credit rating information. If you do not check your credit report, you may have no way of knowing these inaccuracies.
Your credit report rating is the best resource to know the credit worthiness of an individual. Thus, a credit report is just as equally important as credit report rating. To safeguard the latter from unscrupulous individuals and circumstances, its holder must order a credit report regularly to manage his credit wisely while preparing for viable credit strategies.
Khali S. is the founder of http://www.no-cost-credit-report.com - information site that shows you all about free credit report, which companies to avoid and Free Tips & Tricks to boost your credit score legally.