Ever wonder why every finance person you see asks you about your credit report and score? In simple terms, it’s a snapshot of your financial health. Much like going to the doc for a checkup, reviewing your credit report regularly can help you be proactive with your finances.

Seeing What Creditors See

Checking your credit report and score before applying for credit can give you insight into how a potential lender, such as MaxLend, will see you. Many negative marks such as late payments or collection accounts portray you as high-risk to creditors.

Check out your hard inquiries. Too many of these without an associated new account can make you look untrustworthy. It makes it seem other companies weren’t willing to take chances on you. When companies don’t use soft inquiries, shopping around for the best rates can lead to this discrepancy.

Finding False Information

Sometimes, the marks on your account are inaccurate or incomplete. You should file a dispute with the credit bureau and contact the reporting company immediately when this happens. Always look for unfamiliar charges and make sure any open accounts report payments and amounts correctly.

It’s a good idea to check the reports from all three major credit reporting bureaus as sometimes they differ. For example, you may find an account with MaxLend loans on one report, but it’s missing from another. If the account is in good standing, you’d want to contact the reporting bureau without it. Adding it could boost your credit score with that agency.

Getting Better Rewards

Your credit score can also mean better credit cards. Rewards cards can offset interest rates and get more bang for your buck. Your credit score determines your reward level. Excellent credit comes with awesome rewards and sometimes the bonus of ditching the annual fee.

Lowering Interest Rates

Since your credit score and report determine your creditworthiness, they also determine your interest rates. Lower interest is the most commonly known benefit of checking your score before applying for credit. It’s easy to find the average amount of interest charged to others with your score. Then you can apply for the best rates when you need quick cash loans or credit cards.

You can also negotiate your interest rate on loans when you know they aren’t offering you the optimal rate. A difference of just 0.44% could be thousands of dollars by the end of the loan. Keep this in mind the next time you chat with a broker.

Increasing Job Opportunites

The boost to a job application is a little-known benefit. When potential employers see two well-qualified applicants, their decision may come down to credit history. While a job might not check your credit report, if they do, they’ll likely be looking for an impeccable and long record, not a short one, impeccable or otherwise. Making an effort to acquire credit early in life and use it wisely is an essential step toward competing in the job market.

No matter the state of your finances, it’s always a good idea to know where you stand. You can’t fix problems you don’t know are there. Likewise, you can’t leverage the power of a spotless record if you don’t know it’s spotless. Know your financial health so you can act accordingly.