Your credit score is important for obtaining credit. Your
credit score is important to know, whether you need a new credit card, an auto loan,
or a mortgage. Lenders use your credit scores to decide whether you
are a good credit risk. If you have a high credit score, you are more
likely to obtain the best rates.
Another reason why you need to see your credit report is to know if
credit report contains errors. Mistakes do happen. Most people have
forgotten a payment or two, but it's quite different when somebody
else's mistakes cause false delinquencies and problems on your report.
Fixing such errors is important because unfavorable information on your
credit report, whether it is accurate or a mistake, affects your
ability to borrow money.
Identity theft is a crucial reason to know what is on your credit
report. Identity theft is a crime in which someone pretends to be you
by obtaining key pieces of information such as your Social Security and
driver's license numbers, and obtains a credit card or a loan,
merchandise or services in your name. You are left with a ruined
credit history. Last year, the identity of an estimated 7 million
Americans was stolen. The easiest way to find out if you are a victim
is to see your credit report. The longer you are not aware of what
is happening, the more time-consuming and complicated becomes the task
of repairing the damage.