Reasons To Check Your Credit Report Often In Guelph

Reasons To Check Your Credit Report Often In Guelph

Posted on June 7, 2021

Our credit scores have a huge influence over our lives, often in ways we don’t anticipate. So, keeping on top of your score give you a significant advantage. That’s what we’re discussing today. Our Flamborough auto loan team came up with several good reasons to regularly check your credit report and your credit score.

Know why you’re rejected for credit

If you apply for an auto loan, credit card or other form of borrowing and are refused, a quick check of your credit report should tell you why. As long as the rest of the application was accurate, chances are, your credit score got in the way.

Checking your credit report will show you what the lender sees and should hopefully show you why your application was refused.

Prepare yourself for lower rates

We all know that the higher your credit score, the lower the interest rate you’ll be charged on a Flamborough auto loan. High rates are for those who don’t miss payments and who manage debt sensibly.

Those borrowers present a low risk to lenders which they reward with lower interest rates.

Spot mistakes or fraud faster

Checking your credit report means you should spot any issues faster. That includes genuine mistakes but also fraud. You’ll see applications for credit, any changes to your credit mix, type and amount of credit and any recent credit applications.

If you didn’t make any of those, you can quickly take action to prevent further credit being issued and begin taking action against the credit that’s already out there in your name.

Make improvements on your credit score

If you’re planning for an auto loan at some point in the future, knowing your credit score well in advance will help you take action if you need to.

Need to boost your credit score to get a lower rate? Taking a year to improve your score can achieve more than just a few weeks!

This is especially valuable if you have had credit issues in the past and need to boost your score out of bad credit territory. With the right approach, you can do that in as little as 18-24 months.

Monitor your credit utilization

Credit utilization is the amount of credit you have available that you’re using. If you have multiple credit cards, this can creep up without you realizing it. While not a problem in itself as long as you’re still in control, a high credit utilization ratio can impact a Flamborough auto loan application.

Use too much credit and lenders will look long and hard at your application. In borderline cases, this can prevent you accessing auto loans until you have paid down some of that.

Lenders tend to look favourably on credit utilization under 30%. Anything over and they begin looking more closely at credit applications.

Check your credit report for free

Did you know you can check your credit report for free? You’re entitles to one free credit report for free, per credit bureau. As Canada has two, TransUnion and Equifax, you can have two free checks per year.

Contact TransUnion or Equifax directly to request your free report.

Contact Unique Chrysler for help, advice and competitive Flamborough car finance and leasing.

Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!