Credit report and Credit Score:

The credit report is an integral part of our financial lives. The report defines us financially and provides with our detailed financial activities. The Credit Score (a three digit number), helps various creditors assess you in terms of your capability to borrow and pay for a loan. Many people have not given due importance to this three digit number but eventually they have landed in trouble. It is extremely important to understand the significance of credit score and your credit report. Since a very young age our parents stress on behaving properly to avoid situations uncalled for. Finance can also be included in the learning process making it easier to implement in regular livelihood.

Your priority:

Healthy finance can be achieved by setting priorities straight. Your credit report is your priority. This is the information that credit grantors use when they consider you for credit. Keeping regular track of your report and cleaning the accumulating waste is a necessity. Do you know who pulls your credit report when its not you?

Sources behind credit pulls:

The major five sources behind the credit pull are

• Lenders

• Property Management companies and Landlords

• Insurance companies

• Employment agencies and employers

• Cell phone and utility companies

These are the top five who are responsible for your credit pulls.

Defining their intentions:

Let’s find out the reason behind the credit pulls that they make

1. Lenders

You have to impress the Lenders with your credit report. Their impression will help you to get a loan at a fair rate. If you have good credit with well maintained credit score, the possibility is that you will get a very good rate on the required loan. In case your report shows negatives and defaults the lender or creditor will think twice before investing in you. Your FICO and the report on a whole, its maintenance and balance is totally your responsibility.

2. Property Management companies and Landlords

They check your report to understand your capability to pay back. If you do not show a good credit history then renting or buying real estate or taking a house on lease becomes extremely difficult. You will have to find a willing relative or friend to co-sign for you. It is more likely that you will be charged atrocious rates and security deposits.

3. Insurance Companies

Insurance is a huge industry and they look for people who can invest in them. When they are paying for your expenses they have the right to judge your financial capabilities. This is outlined in your report. Therefore it is always the credit report and the score that proves your creditworthiness.

4. Employment agencies and employers

Employment is a part of our lives. Your career depends on your financial behavior as well. An employer will check your report (not without your written permission) to see your credibility. If your report shows irresponsible behavior they might think you to be irresponsible towards your work as well. This is just a possibility but the credit report is definitely an important aspect.

5. Cell phone and utility companies

The cell phone companies pull your credit report before they get into contract with you. They want you to be a good customer for sure. They might not set a contract with you if you have a faulty credit.

The utility companies do a credit check to find out your credibility in paying bills.