Sam is planning to apply for a loan so he can start a business. I told him that he can grab a copy of his annual free credit report from the major credit bureaus first, so he can check on his records, and fix whatever needs to be fixed.
It is important to always check one’s credit report, not only to determine one’s credit score but also to keep track of all the entries. The bank or lending companies will be checking those things.
It’s better if you know everything beforehand, to know what to expect, and if you will meet the requirement for the loan.