subject: Credit Report Know-how Is A Yes-yes [print this page] Do you know how to read a credit report? You should or else all the free credit reports in the world cannot help you improve your credit score. Your credit score is the summary of your credit report expressed in a three digit number that ranges from 300-850. It is important because it is the basis of creditors for granting you a loan or an application for a credit card. Recently, even landlords now consider credit scores before renting their properties to individuals and businesses.
Under the Fair Credit Reporting Act, a credit report company or bureau is required to give you a free copy of your report once annually if you ask for it. Your report contains information about yourself. One of these information is your about your identification and employment. Under these are your name, SSN, employer, and the name of your spouse. The credit bureau preparing your report may also include information on your past employments, home ownership, income and previous address upon the request of the one making the inquiry on your report.
Your credit report will also show your payment history and this will account for 35% of your credit score. Payment history will contain information on your accounts and a list of your creditors. It shows extension of credits and whether or not you've paid on time. They may also note some related information such as an account overdue referral to a collection agency. Paying your bills fully and on time as much as possible will do wonders to your credit score.
On your report, you will also find inquiries made on your report or the names of companies and people who have asked for a copy of your report from the credit report company. The list names of creditors who have made inquiries will only be within the past year. The list of the businesses and individuals who have inquiries on your report will only be up to the past two years.
Lastly, your credit report will include public record information or events that are recorded and are open to the public. These include, but are not limited to, bankruptcies, foreclosures, and tax liens. On the computation of your credit score, this will account for 10% of the total. Understanding the information on your report will give you an idea on what to do to be able to get that loan application approved. Your report is useful information in this society where credits are unavoidable. After all, you need to get yourself informed on matters concerning your identity in order to keep it protected from scammers.
