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| Credit Report Photo from Shutterstock |
We hear talk of our credit rating constantly nowadays. Can I take a mortgage easily? Not sure, they need to check my credit rating. Well, surely I can take out a mobile phone contract? No, not so quick, again a credit check is needed to see how I score. It isn't just the big expenditure nowadays like buying a house or car that result in your credit rating being assessed it is also the more every day like monthly paid insurance and even some bank accounts. But I wonder how many of us really understand what it all means and more importantly how we can effect it.
So lets start at the beginning, what is a credit rating? Investoedia defines it as "An assessment of the credit worthiness of a borrower in general terms or with respect to a particular debt or financial obligation."