Your credit report is like your track record of how well you have been managing your credit, paying bills and how much debt you have had. It has everything you can think of. Things such as accounts you haven’t paid accounts you open and closed, if you’ve ever filed for bankruptcy, and anything else you can think of has required you to use some sort of credit.
Your credit report is been used by lenders to make decisions based on you wanting a loan. So things such as how much do you want for a loan, if you’ll even be approved for a loan, interest rates, anything else is solely based on your credit report and your credit score.
One thing that confuses a lot of customers is the fact that they have more than one credit report. This isn’t uncommon, a lot of companies that you have any type of credit with may not report to the same credit bureau. Supreme example out of the three main credit bureaus your mortgage company may only report to two, so when you request a credit report you may see a discrepancy between a few of them.
Your credit report has a ton of information that tells lenders exactly who you are. So let’s take a look at some of the information that’s appeared on your credit report.
Identifying Information. This includes things such as your name, social insurance number, address, employers, and even your date of birth. Think of it as a profile oh, so anything they like to know you’d have to provide them with so they can identify you differently from anyone else.
Credit History. Is this pretty self-explanatory, anything to do with your credit history? So any payments you made for Services, bank accounts, mortgages, any type of loan you’ve ever taken out. You can find under the credit history section.
Public Records. This section has information about you if you ever been to court and had judgments passed, or even filed for bankruptcy, liens, and foreclosures.
Inquiries. Any company that has done a credit check on you, or you have provided them with your credit information.
Credit reports are pretty straightforward, are divided into four different sections each having their own significance. The first section provides information about you, so anything we said regarding your identifying information will be outlined here.
The second section provides Information about all types of credit you’ve had. So this can include anything such as a line of credits, mortgages, auto loans, credit cards anything you name it’s there.
Section 3 of the credit report provides us with any information about judgments being passed, foreclosures, bankruptcies and more. Following that is section 4 where any company asks for your credit report will be outlined there.
You may agree that this is quite a bit of information that’s on your credit report so you may ask yourself how they get this information. Well here’s a little outline as to how credit bureaus get your information.
Well, when you do business with banks or any type of lender they send their information over to the three major credit bureaus in the United States. It’s not limited to just financial institutions, even courts, Local government personnel, and collection agencies provide your information to the credit bureaus.
Most of the time anything that has to be dealt with the bank has your credit report updated monthly. Although it is not required for companies to update your credit report frequently. Some companies do submit information to your credit report see you’re updated regularly. Although in most cases companies don’t even take the time to do so. The reason being is if you’re maintaining payments with them and keeping ahead of the Curve you’re in a good position. The only time they would take do the credit Bruce would be if you become delinquent in your account. Meaning you’re not keeping up with the payment and you’re having everything roll over.
An example of this would be, you haven’t made payments to your cell phone bill in 6 months so your phone carrier would notify your credit bureau that you have not been keeping up with your payments and it could be reflecting a debt collection.
The rule of thumb is to check your credit report at least once annually. This is where you’d make sure that all accounts are in order and your credit report reflects everything you’ve had in the past and what you have presently and nothing more. If you see some negative items on your credit report you can have them disputed and contact credit repair services to have them removed. A good recommendation for when you should get your credit report as if you’re making a huge financial obligation. So if you’re looking to purchase a car, or even a house definitely review your credit report just to make sure you won’t be blindsided with a lower score than you anticipated.
Getting your credit report is fairly easy. We recommend that you at least check your credit score once a year by contacting one of the three major credit bureaus. You’re entitled to one free credit report annually.
If you do the math, you’re eligible for at least three free credit reports a year one from each credit bureau. If you spaced he’s out accordingly you can get one every four months. That way you’re on top of your credit score more frequently so you don’t have to worry about any negative items on your report without your knowledge. It’s a great little tactic to keep you ahead of the game and maintaining a strong credit score going forward.
Your credit report is extremely important because it’s the key to all financial milestones in life. It’s a direct reflection of you and your habits we’re Banks, landlords, dealerships, and even home services rely upon the accuracy of your credit report to make sure you’re an adequate and safe customer to them.
We highly recommend that you take the time to make sure that your credit report is accurate so you can make that financial commitment without a hassle. If you’re looking to have your credit report adjusted call us to have a free consultation on credit repair services and we can definitely help you out.