What’s In Your Credit Report?
Credit Reports are an individual’s record of past borrowing and repaying, including information about late payments and bankruptcy.
When a customer fills out an application for credit from a bank, store or credit card company, his or her information is forwarded to a Credit Bureau. This information is used by lenders such as credit card companies to determine an individual’s or entity’s credit worthiness (an individual’s means and willingness to repay a debt). This helps determine whether to extend credit, and on what terms including what interest/APR to charge.
Because so many important decisions are based on your Credit Report, it is important that you know how other people see you! There are 3 major Credit Bureaus in the United States: Experian, Equifax and TransUnion. Although they do share information with each other, sometimes they can return drastically different credit ratings. To help individuals, these 3 companies created one website where you can obtain all 3 reports for free are: http://www.annualcreditreport.com/.
When you know what is in your credit report you can take the step to improve your credit. Upon reviewing your credit report for the first time you may notice that there is incorrect information. If this is the case then you can have the information corrected. The same goes for open accounts that are not yours or perhaps payments that were reported as late but were really on time. Credit card companies make mistakes and sometimes there is information on your credit report affecting your credit in a negative way. When you check your credit report you know immediately what is right and what’s not and can go about correcting it and many times improving your credit. In addition, you can determine if you will be approved for credit in the future.
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