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What Is Your Credit Report

Your credit report is like your financial report card. It is a history of your financial activities used by creditors and other businesses to evaluate your applications for credit, insurance and employment. Your credit report includes data such as how much is outstanding on an account, what your credit limits are, and your payment history. It also includes the names of companies that have recently inquired about your credit, public records including bankruptcies, judgments, and foreclosures. Your credit report will not include information about your race, salary history, religion, checking or savings accounts, stocks and bonds, medical history, personal assets, criminal record, or personal background and lifestyle.

Companies called consumer reporting agencies (CRAs) or credit bureaus compile and sell your credit report to businesses. It's important that the information in your credit report is complete and accurate. If you have a good credit report, you are more likely to get more credit and a better interest rate than someone with bad credit.

The following types of information are in your credit report:

  • Personal Identifying Information
  • Credit History
  • Public Record Information
  • Inquiries

 

Personal Identification Information

This includes items such as your name, any aliases you may have, current and previous addresses, your Social Security number, your birthday and employment and possibly your marital status.

Credit History

The bulk of your credit report consists of details about credit accounts that were opened in your name or that list you as an authorized user. Credit Information includes credit accounts or loans you have with banks, retailers, credit card issuers as well as mortgage and auto loans. It will included detailed information like account balances, credit limits and monthly payments.

If you have a history of late payment or if the credit account was included in a bankruptcy, charged off, or put into repossession, the listing will be considered negative or derogatory.

Public Records

Bankruptcies, judgments, liens, satisfied judgments and liens, and all court records are considered public. These are all negative in the eyes of a creditor.

Inquiries

Each time a potential lender looks at your credit file, an inquiry appears on at least one of your credit bureau files. Almost any credit card company, bank, or other potential lender will check your credit report when considering your application.

Anyone with what is considered a permissible purpose can look at your report. These companies, groups, and individuals include:

  • Anyone with Potential lenders
  • Landlords
  • Insurance companies
  • Employers and potential employers (usually only with your written consent)
  • Companies you allow to monitor your account for signs of identity theft
  • Some groups considering your application for a government license or benefit
  • A state or local child support enforcement agency
  • Any government agency (although they may be allowed to view only certain portions)
  • Someone who uses your credit report to provide a product or service you have requested
  • Someone that has your written authorization to obtain your credit report

It is important to monitor your credit report for errors or inaccuracies. Being aware of your credit and your credit score is very important, especially since you can harm your credit without even realizing. Under the federal The Fair Credit Reporting Act (FCRA) you are entitle to a free copy of your credit report, from each of the nationwide consumer reporting companies - Equifax, Experian, and TransUnion, once every 12 months.

Understanding what components make up your credit report and how they influence your credit score is an essential part of maintaining a good credit rating. The Complete System to Repair Your Credit and Boost Your Credit Score will explain the inner workings of the credit industry so you understand what the credit bureaus are reporting on you. You will also find out where to get at least 3 free credit reports each year so you never have to pay for your credit reports as well as how late payments affect your credit score and proven tips to improve your credit score within 60 days. Download Today!