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Identity Theft

A credit report is basically a consolidated account of your past financial borrowings and repayments. Each time you borrow, pay or delay, it will be reflected in your credit report. Lenders use it as a barometer of how likely you are to pay back any money lent to you.

Credit reports work through issuing a credit score. They will calculate your borrowings and repayments against the time taken to repay and come up with a score which ranges from 300 to 850.

The higher it is, the more financially stable you are considered to be. It means that you are more likely to be offered a credit card, a loan or a mortgage. If your score is low, it means that your application for borrowing money has a high chance of being rejected.

If you have a credit score of over 700, you are considered to be in excellent credit health. If you are below 600, then you need to improve your credit health by paying your debts off.

Now, lets look in more detail at some of the reasons why it’s important to have a good credit score…

- Once you have gotten yourself a good credit score, it means easy access to more finances. This could be a store card, bank loan or a car. Today, it’s almost impossible to mortgage a house if you don’t have a good credit score.

- If your credit score is favorable, you’re considered to be a reliable person who pays back what you borrow. This encourages vendors to give you better deals. You will likely get longer repayment periods or healthy discounts.

- When applying for a job, most employers will do a credit and background check on you. Applicants with the best credit scores are in an advantageous position, as they are considered to more honest and reliable.

- An important benefit of a credit report is that it can be used to track identity theft. If anyone steals your identity, and is using up your finances, it will show on your credit report.

Get my free credit report here http://www.myfreecreditreportgov.com/