How healthy is your Credit Rating? Do you know that a good Credit Rating can significantly enhance your chances of obtaining a low interest loan? It can open the door to other important choices in your life, and even affect your job application.

1. Getting your House in order

In the current financial climate now more so than ever, it's imperative to get your house in order.

As lenders become tighter on what they look for in a customer this has left vulnerable people exposed to lenders with higher interest. Therefore having a good Credit Rating could be the key in making sure you keep your head above the water and stay away from the sharks.

2. The Key to Cheaper Finance

Why is your Credit Rating so important? Many people would not give this a second thought, much less actually do something to improve things. Other people, whilst they may be aware of its existence, they would not necessarily understand the reasons for its importance.

Basically a good Credit Rating is the key to finding cheaper finance.

There are lenders prepared to lend to the 'higher risk' category of person, but these lenders will create different categories of loans to which those people with lower credit scores would qualify.

These different 'categories' of loans work in favour of the lender, and those with the lower credit scores will invariably have to pay higher interest rates, and incur less favourable conditions than those with a higher credit rating score.

That's unfair, you may say, but if you consider it from the other side of the coin, the lenders do have to guarantee their own business as well.

3. Banks look at your Credit Rating Report

It does seem pretty obvious to point this out, but credit reports are principally about assessing you as a safe financial bet. Banks and other lenders are obsessed with credit ratings. They need to ensure they are going to get their money back, should they provide you with credit.

Therefore your Credit Rating, or your 'score' if you will, is going to ensure the banks and lenders can assess your ability to repay. This is then used to either approve or reject your credit application.

If you have been unfortunate enough in the past to default on a repayment or two, your will have a lower credit rating score, and therefore you may incur a higher interest charge from a lender, should they even consider you at all.

4. Somewhere to Live

Other occasions when credit rating reports are utilised is when you are applying to rent or lease accommodation. This enables the prospective landlord to assess whether you will be in a position to pay your rent on time.

5. Job Applications

These days there is a trend among employers to use credit ratings when assessing job applicants. Whilst every prospective employee will be rated on his or her merits, there is a consensus of opinion that a good credit report is a good sign that the applicant is reliable and worthy of consideration for employment.

This seems most unfair, as the time that someone really needs a job is the very time they are probably in greater need of cash to help ease their financial problems.

Check out your Credit Rating Report

To get a free credit report simply Google 'free credit report'. It's as easy as that! Ok you will have to submit full details about yourself and your credit card, but once this is

complete you can instantly log on to your free credit report. Remember to cancel your membership before the end of trial period, otherwise you will be billed for the membership.

So, with the above in mind it stands to reason it's in your own interest to keep your credit rating squeaky clean.

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