subject: What Is A Credit Report -things You Must Know About Your File [print this page] Here's a really simple way to understand a file. Have you ever asked yourself what is a credit report? Well, you are not alone because millions of consumers move throughout life not really grasping the basics of the report. In this article, I will disclose the meaning of a report and the data contained inside the file.
What is a credit report?
Your report is a snapshot of your payment history. It details when you applied for credit, how many positive and negative accounts you have, who viewed your report, and all of your personal information. Reviewing your file every four to six months gives you a chance to check for identity theft, inaccurate accounts, and incorrect information. It allows you to manage your financial situation before applying for a credit card, auto loan, bank loan, mortgage loan, employment, or insurance. For example, if you check your report and notice that there were a few negative items on your report, you will have a chance to fix those items before applying for a loan. By doing this, you avoid embarrassment and several inquiries, which lower your score.
What is a credit report?
Your file contains positive and negative information reported by the creditors and the collection agencies on a monthly basis. They report this data to the credit bureaus through a computer tape monitoring system that is updated regularly. The bureaus then turn around and update the information. A third-party company normally passes public record information onto the agencies.
What is a credit report?
The report could consist of late payments, inquiries, charge offs, judgments, child support indications, foreclosures, and repossessions marks, tax liens, bad collection accounts and bankruptcy listings.
What is a credit report?
The information in the file is used by banks, creditors, car dealers, mortgage brokers, and any other lending institutions to determine if you are worthy of a loan. Collection agencies use the information in your report to track your location and see what other debts you owe. Insurance companies run your report to determine your insurance risk, and employment agencies view your report for employment considerations.
Concluding, its crucial that you apprehend the basic mechanics of the credit file. By doing this, you will have a better picture on where negative items are located, your incorrect and correct balances, missing personal information, and accounts that do not belong to you. Now that you realize the purpose of a credit file, go out there and order yours today.
