Credit Reports: What Type of Credit Checker Are You?
May 16th, 2015
May 16th, 2015
Did you know that the Fair Credit Reporting Act allows you to get your credit report for free once a year from the three largest credit bureaus – Equifax, Experian, and TransUnion? Maybe you’re aware of this benefit or maybe you’re not.
According to a study by the Consumer Financial Protection Bureau (CFPB) only about 15.9 million people actually receive a free credit report from one or more of these agencies. That means about 90% of the people that are eligible to receive their credit report don’t take advantage of this free benefit. So what type of credit checker are you? Do you check your credit reports frequently, occasionally or never?
Active Checker
An active checker looks at their credit reports at least once a year or more frequently. These people are more financially savvy and know that their credit is important. And they understand how their credit can impact their ability to get a loan for a new home or a refinance.
Some reasons why they check their credit more frequently are:
Former Checker
A former checker is someone who has looked at their credit reports in the past, but they may not be actively checking their scores now. Motivations behind former checkers’ behavior include:
Non-checker
Non-checkers have never checked their credit. Often, they’re younger adults. They have lower incomes. They have fewer financial accounts and/or credit cards. Or they rent versus owning a home. The reasons why they don’t check their credit are:
Regardless of what type of credit checker you are, it’s important to know that while lenders do look at your credit score to help them decide whether to lend you money or not, every lender has their own criteria they use in determining who they will loan money to. So if you’re looking to purchase a new home or refinance an existing one, contact the mortgage specialists at Grandview Lending. They can review your credit scores and help you find the best mortgage solution based on your credit history and your needs.
Photo credit: iStockphoto / almagami
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