Credit reports and credit scores have been in the news as of late due to the fact that changes in certain rules have now required lenders to disclose a consumer’s credit score to them and potential reasons as to why they have either been denied credit or may not have received desirable terms on lines of credit when a consumer applies for things like a credit card or loan. When a consumer happens to be looking to get optimal rates on a card, mortgage, or even a car loan, in the past it was a case where they may have either been denied or did not receive the best rates or terms on these lines of credit, but thanks to these new rules consumers are now able to have more disclosure in terms of where they stand in their credit life.
However, there are arguments being made that consumers don’t necessarily need to be denied a line of credit before they can begin increasing a low credit score as a consumer’s credit history is one of the areas where focus needs to be given, particularly for anyone who is in a position where they want to build their credit rating so that favorable conditions and terms can be gained when interest rates or lines of credit are involved. Obviously, it’s nice to know where a consumer stands from a lender’s viewpoint, as there are some men and women who may have attempted to get their credit score online but they not have received the exact score that their lender sees.
With these new rules though, consumers who are in a position where they apply for some form of credit but are denied, will obviously be able to get this information but there are some officials who argue that a consumer’s credit score should not necessarily be their main focus, in terms of reviewing where they stand, but when it comes to reviewing one’s credit life, history is going to be much more comprehensive. A credit history can be more helpful simply because there may be mistakes or misrepresentations on a credit report that could be holding a consumer back from getting the best rates on lines of credit, but a consumer does not have to apply for credit and be denied before receiving this information.
There are opportunities for consumers to get their credit history well before they apply for any type of credit and if a mistake happens to be in place, old debts that have been paid are still present, or other errors remain on a consumer’s report, this could be easily corrected in many cases and help the consumer improve their credit standing. While no one is saying that a consumer should not take advantage of these free glimpses into their credit score if a lender must disclose this information, but for those who want to better prepare for when they actually apply for a line of credit, simply looking at a credit report, correcting any errors, and putting payment practices in place within their financial life to make sure that they continue to build a positive credit history can go a long way.
There are credit advisers and counselors that can help consumers better formulate a budget so that they can handle debts, pay their bills on time, and ultimately move further down the path to a better credit score, so consumers who are in this position where they need to improve their credit history may want to look at their personal situation, seek professional advice if needed, and make sure that everything on their credit history is accurate.