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Making Sense Of The Information In Your Credit Report
If you've ever applied for a card or loan, you've probably had your report reviewed by the lender. Your report has a huge impact on your financial future, so it's well worth your time to be sure that you understand what your report says about you. Even if you're not interested in obtaining credit, your report can impact other areas of your life. Potential employers view your report to assess your trustworthiness as an employee. Landlords frequently check the reports of their tenants before allowing them to sign or renew their lease.You can request copies of your report from the three major bureaus: Equifax, Experian, and TransUnion. A recent amendment to the federal Fair Reporting Act requires each of these national consumer reporting companies to provide you with a yearly free copy of your report upon your request.Basically, your report is a summary of how you pay your bills; repay loans; how much you have available; what your monthly debts are; and other types of information that can help a prospective lender decide if you are a good risk.Your report is made up of several sections. The first section contains personal identifying information such as your name, current and previous addresses, social security number, telephone number, birth date, and your current and previous employers.Your bill paying history with banks, retail stores, finance companies, mortgage companies, and others who have granted you is one of the most important parts of your report. Public records that might indicate your worthiness, such as tax liens, court
judgments, and bankruptcies are also included in the section detailing your history.Your report includes a comprehensive listing of all granters and other individuals who have received a copy of your report. In addition, lists of companies that have received your name and address in order to offer you are also included in your report.Most bureaus allow both the consumer and the creditor to make statements if there is a dispute about something on the report. If applicable, your report will include these dispute statements.Your report does not include bank account balances, race, religion, health, criminal records, driving records, or annual income. You've probably heard about a FICO score as well. scores are based on formulas that use the information in your report, but they're not considered part of your report.Problems with your report will result in you either being denied or receiving a higher interest rate. Red flags on your report include excessive applications for additional credit, a short history, a high debt ratio, and late payments to previous creditors. In most cases, negative information will stay on your report for seven years. However, bankruptcy information stays on your report for ten years.To help improve your report, always remember to close unused accounts, pay your bills on time, never use all of your available credit, and don't apply for unnecessary credit..
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