Getting into debt is dangerous for many reasons, and among these is the impact it can have on your credit rating which can then make it difficult for you to apply for credit cards and general loans. Because your credit rating is a reflection of your previous ability to pay back loans, this means that lenders are weary of lending to anyone whose score is bad.
Fortunately there are several ways to improve your credit rating – such as getting a credit card and then paying it back on time regularly, or paying off all your existing loans, or using loan consolidation in order to pay off debts with one larger loan that you can then pay back.
However in order to know whether you should go ahead with these strategies you first need to know the condition of your credit rating as it is. At the same time you also need to know what your credit rating is like before you apply for loans and even before you apply to rent a property. If you don’t then you can end up wasting time spent applying only for your application to be rejected, and this will often cost you money too.
Fortunately there are ways you can check your credit rating completely free or very cheaply and this way you can become more informed regarding your finances. To do this search online for ‘check credit rating US’ and this will come up with some sites that offer to check your credit rating on your behalf. Usually the sites that charge a little will be the more reliable and will give you a more detailed report, and this way you can see things like who is connected to your credit rating – sometimes people you previously shared an address with or a joint account with will still be attached to your credit rating and this can then effect your score.
Another way to check your credit rating if you’re not computer savvy or if you’d rather not share your details with these websites is to apply for a credit card with your bank (it’s worth noting too that sometimes checking your credit can actually damage it). If you do this then they will need to check your credit rating for you in order to know if this is a good idea and what kind of limit to put on your credit. This will be free because it’s in the bank’s best interests for you to get a credit card and it shouldn’t effect your score. They might not give you the full details regarding your credit rating, but the limit they offer you will at least be a reflection on how good your history is.
And lastly you can get a good idea of your credit history just by thinking about how you’ve spent money in the past. Every loan repayment you’ve paid off on time including credit card loans will be a big plus for you, and meanwhile any you’ve failed or defaulted on with be a big minus. At the same time using your bank accounts often and healthily will also help you to build up a good score. Think honestly about how you have spent your money and this can often paint a picture of your credit rating completely free