3 Reasons Tenants Should Check Their Credit Reports
Because credit plays such a big role in our financial lives, everyone should order a Credit Report once a year. Federal law requires Equifax, Experian and TransUnion to provide you a FREE credit report every 12 months. However, due to the pandemic, the credit agencies are offering free weekly online credit reports. 3 reasons tenants should check their credit report include the following:
1. Seeing what your landlord is seeing
Landlords use credit reports to determine how likely tenants are to pay their rent on time. By reviewing a prospective tenant’s report, a landlord sees payment history for loans, credit cards, and other bills. As a result, they use this information to decide if the applicant is acceptable or risky. By being aware of this information, a tenant may be able to fix any issues before submitting an application and risk being rejected.
2. Being aware if someone is trying to steal your identity
When someone’s identity is stolen, bank and credit card accounts are often opened in their name. These accounts and any payments/non-payments are reported to the credit agencies. By checking their credit report, a tenant can find out if their identity has been stolen and handle the problem before their credit score is affected.
3. Understanding what is affecting your credit score
When you make a payment on a credit card or loan, the business that gave you the loan or credit keeps a record of how much and often you pay, as well as the credit limits and loan balances. Those businesses and other sources may report your credit, loan and payment history to one or more credit reporting companies. The credit reporting companies each combine the information they receive about your different credit, loan and payment activities into a credit report.
How to Order a FREE Credit Report:
While many sites promise free credit reports, their main goal is to sign users up for subscription-based monitoring services. To avoid this problem, AnnualCreditReport.com is the only site directed by Federal law to provide free credit reports.
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