Credit Report Secrets: Do You Know What They Reveal?


If you've ever applied for a credit card or loan, you've probably hadyour credit report reviewed by the lender. Your credit report has a huge impact on your financial future, so it's well worth your time to be sure that you understand what your credit report says about you. Even if you're not interested in obtaining credit, your credit report can impact other areas of your life. Potential employers view your credit report to assess your trustworthiness as an employee. Landlords frequently check the credit reports of their tenants before allowing them to sign or renew their lease.

So whether you knew it or not, your credit report can have a major impact onyour quality of life. With this said I'm sure you can now see that there is abenefit to obtaining and then verifying that the information on your creditreport is accurate and true.

You can request copies of your report from the three major credit bureaus:Equifax, Experian, and TransUnion. A recent amendment to the federal Fair CreditReporting Act requires each of these national consumer-reporting companies toprovide you with a yearly free copy of your credit report upon your request.

Basically, your credit report is a summary of how you pay your bills; repayloans; how much credit you have available; what your monthly debts are; andother types of information that can help a prospective lender decide if you area good credit risk.

Your credit report is made up of several sections. The first section containspersonal identifying information such as your name, current and previousaddresses, social security number, telephone number, birth date, and yourcurrent and previous employers.

Your bill paying history with banks, retail stores, finance companies,mortgage companies, and others who have granted you credit is one of the mostimportant parts of your credit report. Public records that might indicate yourcredit worthiness, such as tax liens, court judgments, and bankruptcies are alsoincluded in the section detailing your credit history.

Your credit report includes a comprehensive listing of all credit grantersand other individuals who have received a copy of your credit report. Inaddition, lists of companies that have received your name and address in orderto offer you credit are also included in your credit report.

Most credit bureaus allow both the consumer and the creditor to makestatements if there is a dispute about something on the report. If applicable,your credit report will include these dispute statements.

Your credit report does not include bank account balances, race, religion,health, criminal records, driving records, or annual income. You've probablyheard about a FICO credit score as well. Credit scores are based on formulasthat use the information in your report, but they're not considered part ofyour credit report.

Problems with your credit report will result in you either being deniedcredit or receiving a higher interest rate. Red flags on your credit reportinclude excessive applications for additional credit, a short credit history, ahigh debt ratio, and late payments to previous creditors. In most cases,negative information will stay on your report for seven years. However,bankruptcy information stays on your credit report for ten years.

To help improve your credit report, always remember to close unused accounts,pay your bills on time, never use all of your available credit, and don'tapply for unnecessary credit.

If you would like to get more freecredit report information you can visit our website which contains many creditreport resources. http://www.my-credit-report.info

This article is copyright 2005, but can be freely reprinted, as long as nochanges are made, including hyperlinks.