Why Not Checking Your Credit Score Regularly Could Stop You From Buying Your Next Car Or House

If you’re looking to get approved for a car or a home loan, you might be wondering if you should be checking your credit score before applying. Not knowing your credit score and history can make it hard to know what kind of loan you should apply for, and might even stop you from purchasing that dream car or house.

To find out more about checking your credit score before you apply, read on below.

Why is checking your credit score so important for a loan?

Your credit score is one factor that helps lender determine whether to accept your loan application. Your credit score can also determine how much they’re willing to lend you, and, depending on your score, the loan terms that you are offered. Since your credit score can determine these factors, it’s important to check your credit score and credit report regularly.

Regardless of your credit score, it’s important to be aware of the history that you’re aware of the history that makes up your score. Making sure that you are maintaining and checking on your credit history in case of any errors that are listed will help you prepare for any future loan applications. Not checking your credit score means that you may miss errors that have been listed, or even defaults that you have been unaware of.

How could not checking my credit score affect my loan?

If you have errors listed on your credit report that you are unaware of, you might not have been offered the best deal on your loan. Not knowing your credit score could mean that you are missing potential errors, or have been missing repayments that you aren’t aware of.

Regularly checking both your credit reports and credit scores is an important way to not only make sure that your personal and account information is correct, but checking may also help detect signs of potential identity theft. By not knowing your credit score or checking your history, you leave yourself open to potentially not being offered the best loan possible.

What can affect my credit score?

Your credit score can change regularly due to activity in your credit report. While having good financial habits can positively affect your credit score, there are a lot of bad habits that can negatively affect your credit score too. These could include:

Payment history – Your payment history can have a big effect on your credit score. Multiple late repayments can affect your credit score, and the later you are, the more your credit score may decrease.
Credit inquiries – Applying for too many forms of credit in a short space of time can harm your credit score by creating too many hard inquiries. Hard inquiries may remain on your credit report for two years. It may not matter what type of credit you apply for, or how much you’re asking to borrow. Try to space out credit applications to when you really need them.

Reporting errors – It’s possible that your credit file could have errors listed on it, so it’s important to make sure everything listed is accurate. If there’s a mistake on your report, you may need to contact your lender and the credit reporting agency who listed the error.
Overdue bills – Consecutive late payments to the point where debt collection agencies are involved with you can negatively impact your credit score.
Avoid defaults – Defaults and certain court judgements may have a negative impact on your credit score so it’s best to try and limit them from happening by staying on top of your repayments.

Tiger Finance can get you the best loan possible

Our loan specialists can get you approved for a loan in four easy steps. You’ll have a free consultation with one of our specialists, and we will tailor-make you a loan. We will then negotiate with lenders on your behalf before you are approved for the perfect loan!

If your credit score is less than perfect, we can still get you approved quickly and easily. As bad credit experts, we have hundreds of partnered lenders who offer loans regardless of credit scores. If you’re ready to get funded, call today to speak to one of our loan specialists for your free initial consultation, or fill out our call back form here.