What is a Credit Report?
What is a Credit Report?
A Credit report is basically a summary of important information about you. A credit report contains information about companies that have extended you money, repayment terms, the balance of credit due, how much you have previously borrowed, and personal identifying information. The personal information contained in your credit report is your address, your name, your social security number,your marital status and your date of birth. It may also contain personal information identifying your previous places of address and/or employment.
What is a Credit Report Used For?
A credit report is used by a lender company such as a credit card company, loan company, automobile lender, or a home real estate company. When these outside independent lender companies look at your credit report, they are mainly looking for amounts borrowed and payment history.
Lending companies want to be sure that you are in good standing with any other financial institutions that you have business with. They are basically checking to make sure you are going to pay them back if they extend you money. All of the information contained in your credit report is factual about your transactions with money lenders, banks, or other financial institutions.
If there are any discrepancies in your credit report, you must have them amended immediately by calling the credit report service that issued you the report. Since different credit reporting companies may contain different copies of your credit report it is useful to check with approximately three different companies. Nearly 40% of all credit reports have errors in them. Be careful to thoroughly read your credit report.
Credit Reports are used by financial institutions in order to make decisions concerning your financial future. Some of these decisions are your interest rate, whether or not you can get a loan for a home or a car, whether you can get that new credit card or get your current available credit increased.
Credit Report are often ran when you are trying to rent an apartment and are even as part of some job application processes, especially if you are applying for a job in a financial field or for a bank or other financial institution. In short having a bad credit report can make a lot difference in your life. Do you know what you credit report says about you? You should.
Why Should I Care about My Credit Report?
In the modern world, a credit score, as well as a credit report, is used to measure the value and responsibility of anyone seeking to borrow money. It doesn’t matter if you are going to the local bank to borrow a small sum or a large sum, they WILL look at your credit report. So do yourself a favor, take a look at it yourself. If everyone else is looking at it, why shouldn’t you?
But Obtaining My Credit Report is Such a Hassle!
In some cases, this is true. Obtaining your credit report can take several weeks, can involve phone calls, and can even cost you money. The real question is, “Is getting my credit report worth it? ”
The answer to this, a resounding “YES! “. Credit reports are valuable for any number of reasons. You might think to yourself, “Well, I know my credit is bad, why do I need some dumb number telling me what I already know? “. Well, the truth is, you don’t know. Not until you see your credit report! Many consumers these days have the same thoughts, thinking they have bad credit because they were turned down for a loan or credit card.
Many others sit and ponder why their credit is poor, rather than finding out for themselves. Obtaining your credit report puts the control of your credit back into YOUR HANDS! Don’t let Joe Businessman control your life, you have to do it for yourself.
Why Your Credit Report is Important.
Without a credit report you cannot get credit. What does that mean to you the consumer? A solid credit report will get you that new car. A credit report or credit history is needed for your first major investment in a new home. Many employers will now check your credit report before they hire you for that great job you have been trying to land. What will a bad credit report get you? A bad credit report will get you, quite simply and quickly, rejected.
How Does a Bankruptcy Affect My Credit Report?
A personal bankruptcy can seriously damage your credit report but you can repair your credit report with a little patience and discipline. Typically and depending on what type of bankruptcy you have filed a bankruptcy will be on your credit report for a period of five to seven years.
Does This Mean I Can Never Fix a Bad Credit Report?
Absolutely not? Many companies are willing to show you how to fix your credit report and actually improve your credit rating which will lead to lower interest rates and save you money.
So How Do I Start to Repair My Credit Report?
Many credit card companies offer credit to individuals with less than perfect credit. A small deposit is required up front to secure credit and then the issuer will give you a credit line. Use your credit card sparingly at first so as to allow yourself the means to pay the balance in full each month. Once you establish a credit history your credit line will be extended and your credit report will improve.