A credit report is a detailed history of how you have used credit. A credit report will list any credit card accounts and loans you might have. It will also list the balances of the credit cards and how often you make your payments. A credit report will also show if any action has been taken against you because of unpaid bills.
A credit report is used by any company who is contemplating lending a person money. They use the credit report to assess how responsible an individual is with credit cards, loans and mortgages.
What Type of Information Is on Your Credit Report?
There are usually four types of information:
1. Identifying Information: Your full name, any known aliases, current and previous addresses, social security number, year of birth, current and past employers, and, if applicable, similar information about your partner. When you examine your credit report, you want to make sure this information is correct, as errors can occur when your identity has been stolen.
2. Credit Information: The accounts you have with banks, retailers, credit-card issuers, utility companies, and other lenders. Information reported here includes the type of account (credit card, auto loan, mortgage, etc..), the date you opened the account, your credit limit or loan amount, the account balance and your payment history.
3. Public Record Information: Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.
4. Recent Inquiries: Wen you apply for a loan, you give the lender permission to get a copy of your credit report. The result is that an inquiry appears on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the last two years.
Your credit report will have a detailed history of how you have managed credit. In general, this credit report will have the information that a creditor needs to decide if an individual is a good or bad risk.
Who Is Allowed to See Your Credit Report?
Credit bureaus can provide information only to the following requestors: (1) creditors who are considering granting or have granted you credit; (2) employers considering you for employment, promotion, reassignment, or retention; (3) insurers considering you for an insurance policy or reviewing an existing policy; (4) government agencies reviewing your financial status or government benefits; and (5) anyone else with a legitimate business need for the information, such as a potential landlord.
Where Do the Consumer Reporting Agencies Get Their Information?
Credit bureaus will collect data from lenders that have previously given you credit. This can include department stores who have given an individual a credit card. It can also include banks or any financial organisation who has granted you a personal loan
Who Decides whether or not to Grant You a Loan?
The credit report company do not make any decisions on whether or not to give you credit. The credit reporting company will merely supply the information about your credit history to the lender and it is up to them whether to grant you credit or not.
Why Should You Obtain a Copy of Your Credit Report?
It is a good idea to obtain a copy of your credit report so that you can see if it contains any errors. Before you apply for loans, credit cards or a mortgage you need to be sure that all the information contained in the report is correct.
How Long Does Information Stay on Your Credit Report?
In most cases, your credit history will stay on yur report for 7 years. However if you file for personal bankruptcy then this will stay on your credit report for 10 years.
