A credit rating is a numerical representation of a person’s creditworthiness, which is used by lenders to assess the risk of lending money. A higher credit rating indicates a lower risk, and therefore, lenders are more likely to approve loans and offer lower interest rates to individuals with higher credit ratings. Checking your credit rating is important because it allows you to understand your financial standing and identify any areas that need improvement and take steps to improve your credit score.
There are a number of ways to check your credit rating. You can request a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once per year. You can also purchase your credit score from a credit reporting agency or use a free credit score monitoring service.
