Free Credit Report – Why You Need One! What’s my Credit Rating? Why is it important? If you’re like most of us, you probably don’t even think about your credit rating until it’s time to apply for a credit card, mortgage or car loan. A little known fact is that people with a ‘good’ or ‘excellent’ credit rating can pay a significantly lower interest rate when they borrow money. This wonderful news can mean a savings to you of hundreds or even thousands of dollars over the life of a loan. Why do banks and credit unions give you preferred treatment when you have a good credit rating? Because you have proven to them that you are trustworthy in handling money, pay your bills on time and are responsible for paying back your loans. What is a credit report and how can I get one? A credit report is a list of how much credit (money in the bank, equity in your house) you have available, how much debt (unpaid credit card balance, car loan, unpaid mortgage balance) you have and a record of how well you pay your bills in a timely manner. Thanks to the newly enacted Fair and Accurate Credit Transactions (FACT) Act, you can receive one FREE credit report a year from any of the 3 major credit bureaus.