In order to answer the question, “Why you should get a regular credit report?”, one has to first consider what such a report is and why it should be obtained regularly. Life has become extremely complex in recent times particularly in urban environments. There are pitfalls and traps that you can fall into and they are about as dangerous as such traps are in the jungle.
In the urban jungles there are people who need to sell things at all costs. They may be compared with hunters looking for prey. In their case the prey is ordinary people with wants, needs and small disposable incomes. These people must be persuaded to buy things such as furniture, clothes, food, cars and items of equipment. Many things are not essential. Even items of food are not always essential and yet at supermarket checkout points poor people can be seen purchasing items of negligible nutritional value, wrapped in shiny paper.
Vendors are extremely skilled in persuading people to buy things. In many cases they do not scruple to persuade buyers to buy goods that they cannot really afford. However if he cannot meet his obligations his debt will be reported to a credit bureau and he will listed as an irresponsible person.
When he applies for another loan to finance a purchase the seller will refer to the credit bureau which will have stored a score indicating his credit worthiness. If the score is too high or too low the application for even a small loan may be refused. This can be embarrassing for a person who finds himself rejected.
In some cases a busy person may find that he does not have much time to attend to his debts. They may include utilities and installments that come up regularly and new payments that are added as new debts are incurred. Between the need to earn and the need to pay a gap can quickly appear as affairs begin to sink into disarray.
Small amounts owed to various shops may not seem important and can easily be forgotten about in the course of a busy life. However, accountants and bookkeepers can be quietly sending information to different credit bureaus without the knowledge of a debtor. Suddenly there may be a need to apply for a large loan. The opportunity may come up to buy a house at a bargain price, or one might need to buy a car in order to transport oneself to a new job location.
In such instances an application for a large loan becomes a life changing event and if such a loan is turned down by a bank or financial institution the consequences can be serious. Why you should get a regular credit report becomes apparent. It allows you to amend a bad situation so that when the moment comes to apply for a large and significant loan there are no problems.