What is a credit report?
If you have ever used credit, there almost certainly is a record of your borrowing history. This record of your borrowing history is called your credit report. Your credit report contains detailed information that includes your identifying information, account history, debt-related public records, inquires, and consumer statements, if any:
- Identification – Your name, previous addresses, date of birth, employer, spouse’s name and reported variations of your Social Security number are critical components.
- Account History – For each of your accounts, specific information is included, such as date opened, credit limits, loan amounts, balances and payment history.
- Public Records – The public records included in your credit reports include bankruptcy filings, tax liens and monetary judgments. Debt-related state, county and federal public records are routinely collected by credit bureaus.
- Inquiries – Anyone reviewing your information results in an inquiry being placed on your credit report.
- Consumer Statements – When there is a disagreement between you and a creditor with regards to the status of an account, a “Statement of Dispute” may be added to your credit report. However, it would not affect your credit score and a lender may not take this into consideration when deciding to extend you credit.
When my credit report is pulled, what are lenders looking for?
When a prospective lender looks at your credit report, they look for signs that you will or will not be able to pay back your loan. Your credit history is an important crucial component that helps a lender predict your future behavior. If you have missed payments in the past, lenders may be less likely to lend to you. If they do, you may have to settle for a higher interest rate on your loan.
Lenders, however, are not the only people interested in your credit history. Landlords may review credit reports and look for any past behavior that may indicate future risky behavior.
Why review my credit report?
Your credit report can be used as a personal financial planning tool. In short, it is a summary of your total debt and credit accounts. It is a snapshot of how you manage your credit usage. If there is erroneous information or activity on your credit report, you need to know immediately so you can address the issue.
For more information or questions about this topic and to learn how to get started on having great credit contact Houston Credit Coach (281) 888-8457 or firstname.lastname@example.org where are slogan says it all “Saving money, is how we help.”