The Importance of Credit Reports and Monitoring

When evaluating credit card applications, credit card issuers rely heavily on the information available in credit reports to decide whether the applicant is eligible for their credit card offers.

The three major credit bureaus, Experian, Equifax and TransUnion, compile credit reports based on each individual's financial records. This information is summarized into a credit score, which gives a snapshot of a person’s previous credit history and predicts his future credit worthiness.

Credit scores range from 300 to 850. The higher your number, the better credit risk you are considered to be. To be eligible for the best credit card deals, it is typically necessary to have a credit score of 600 and preferably higher.

Is your credit score accurate? In most cases, yes. Errors do occur sometimes. To protect your credit worthiness, credit monitoring is essential for everybody. Knowing what is reported to the credit bureaus by others and correcting any mistakes can improve your credit rating. Monitoring your credit also helps you detect any identify theft attempts.