The Important of Credit Report – How to Check Your Credit Report

The Important of Credit Report – How to Check Your Credit Report

Credit Report It consists of facts of how plenty debt you have gathered, the way you pay your payments, where you work,whether or not you’ve got filed financial disaster or had a lawsuit judgment entered against you, and whether or not you’ve got had a domestic foreclosed or automobile repossessed. 

The Importance of Credit Report

Decisions are made about you via diverse Banks by checking your credit report. Banks check your credit report before approving you for credit cards and loans, including a mortgage or auto loan.

It is also used by Landlords to review your credit report to note whether to rent to you. Most employers check credit reports as part of the application procedure.

Your credit report is the sole source of information for your credit score – a number that lenders sometimes use instead of or in addition to your credit report.

Credit score is a three-digit number that sort of grades your credit report. High credit scores show that you have positive information on your credit report while low credit scores indicate the presence of negative information.

The Important of Credit Report – How to Check Your Credit Report

Ways to get Credit Report

Order for free via a website the government set up for that purpose, purchasing from one of the three credit bureaus, for free via a promotional offer.

Information on Your Credit Report are:

Taking care of by businesses known as credit bureaus or credit reporting agencies. In the United States.

Companies that you do business with have agreed to send your debt information to credit bureaus (at least one of them or maybe all three) who then update that information in your credit report.

Most of your credit card and loan accounts are updated on your credit report monthly.

Most businesses don’t update your credit report with your monthly payments, but will notify the credit bureaus when you become seriously delinquent on your payments.

For example, your cable bill isn’t automatically included in your credit report, but if you fall more than six months behind on your payments, the bill might be listed on your credit report as a debt collection.

Information in Credit Reports

What is included in the credit reports are your basic information which include your name, address, and place of employment.

Misspellings of your name and previous addresses and employers may be listed on your credit report.

Sometimes this is because of an error with the business who reported your information. Or, it could be a sign of identity theft.

Your credit report contains detailed information about your credit cards and loans.

For credit cards, your balance, credit limit, account type, account status, and payment history are all included on your credit report. Loan balances, original loan amount, and payment history appear on your credit report.

Public records like bankruptcy, foreclosure, repossessions, and tax liens are listed in a separate section of your credit report.

Credit reports include a list of businesses that have recently checked your credit history either as a result of an application you made or a promotional screening.

These credit checks are known as inquiries. Your version of your credit report will show inquiries from everyone who’s pulled your credit report, including businesses who look at your report for promotional purposes. A lender’s version of your credit report only shows the inquiries that were made when you put in some type of application.

Guide to Check Your Credit Report

Order your credit report at least once a year to ensure the information listed on it is detailed.

If you notice you’ve been a victim of identity theft, then monitor your credit report more often.

You might order your credit report more often than that if you’re actively trying to repair your credit or if you expect to apply for a major loan immediately.

Was this Helpful?