When it comes to making plans – big plans that involve travel, home renovations, and other dreams for which we strive – we more often than not need financial assistance to make it happen. And for that, we turn to a variety of loans to supply us with the money that we need – personal lines of credit, home equity loans, credit cards, and the like. Many of us take for granted the ability to qualify for such loans; the ability to have all the money that we need available to us if we are in a position to pay it back on time. But the truth is that our credit report essentially determines whether or not we qualify for any kind of loan.

A credit report is a comprehensive report detailing our entire financial history as consumers, including our history of payments, the amount of credit that we have now and have had in the past, any loan defaults, and the like. There are three credit bureaus – Equifax, Experian, and Trans Union – that keep track of and collect our financial information. The information is then used to assign each consumer with a credit score – a number that can ultimately decide our financial future as it speaks to our creditworthiness. Our credit score and our credit report is what lenders look to in order to decide if we are qualified to receive a specific loan.

Because the credit report is so important in maintaining financial health, it should be examined periodically by consumers so that they are never caught off guard by a decision made by a lender. To this end, consumers can request a free credit report from the three credit bureaus. Free credit reports offer the opportunity for consumers to examine what is detailed in their history and ensure that it is accurate.

By taking care of our credit report we are taking steps to ensure our financial viability well into the future.

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