The credit rating system is an efficient tool that is used by lenders to assess prospective borrowers. Each person is rated based on their credit history and their past behavior towards loans. The rating is supposed to evaluate the risks associated with lending to that person.
A person with excellent credit rating finds it easier to get positive approvals on their request for loans. This is because the excellent credit rating tells the lender that the risks associated with lending to that person is minimal, which makes the lender happier to lend and at cheaper interest rates. People with poor or bad credit ratings will find it more difficult to get loans, as lenders would prefer to avoid doing business with them as the perceived risks of recovering the debt on time is great. Lenders who agree to loan to this group of people would usually charge higher interest rates to cover their risks.
The important role that your credit rating plays in your ability to access easy and cheap loans makes it important to do your best to improve your credit rating. This first step to do this would be to check your present credit rating. Check your present rating and cross check for errors that may have hurt your rating, so that they can be corrected. So, the answer to the question, should I check my credit rating is yes. Check it to know your present position and learn tips to make it better. You can also check for errors that can be corrected to improve your rating.