Making Sense of the Information in Your Credit Report

If you've ever applied for a credit card or loan, you've probably had your 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.

You can request copies of your report from the three major credit bureaus: Equifax, Experian, and TransUnion. A recent amendment to the federal Fair Credit Reporting Act requires each of these national consumer reporting companies to provide 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; repay loans; how much credit you have available; what your monthly debts are; and other types of information that can help a prospective lender decide if you are a good credit risk.

Your credit report is made up of several sections. The first section contains personal identifying information such as your name, current and previous addresses, social security number, telephone number, birth date, and your current 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 most important parts of your credit report.

Public records that might indicate your credit worthiness, such as tax liens, court judgments, and bankruptcies are also included in the section detailing your credit history.

Your credit report includes a comprehensive listing of all credit granters and other individuals who have received a copy of your credit report. In addition, lists of companies that have received your name and address in order to offer you credit are also included in your credit report.

Most credit bureaus allow both the consumer and the creditor to make statements 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 probably heard about a FICO credit score as well. Credit scores are based on formulas that use the information in your report, but they're not considered part of your credit report.

Problems with your credit report will result in you either being denied credit or receiving a higher interest rate. Red flags on your credit report include excessive applications for additional credit, a short credit history, a high 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't apply for unnecessary credit.

Copyright (c)2005 by Michael Ambrosio. You may publish this article on your site or in your newsletter provided this resource box remains in tact. Michael Ambrosio is the author of many credit related articles. Visit his website today: http://www.yourcreditandyou.com and rebuild your credit.

In The News:


pen paper and inkwell


cat break through


Building A Credit Report Lenders Will Love You For

Will lenders really love you for having a good credit... Read More

The Three Largest Factors In Your Interest Rate

There are three major factors that affect how much you... Read More

Like It Or Not, You Have A Score To Settle! Part 1

Just when most people finish with school and can stop... Read More

What Does Your Credit Score Tell You?

When you apply for a loan or a mortgage, the... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

How to Improve Your Credit Rating

So you got into debt, had problems but you got... Read More

Have You Ever Opened a Checking Account?

Maybe some of you are saving it in your trusty... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

Why Credit Cards are a Bad Idea

Credit cards are just so convenient, aren't they? There's no... Read More

Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK?

About Search Entries:Every time a lender checks your credit history... Read More

Credit Cards for Home Business

It is wise for you to have a company credit... Read More

Saving Money: Quick Cash, High Cost

I didn't think it was possible. But it is. Folks,... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

Legislators Ponder New Credit Protection Laws

Legislators in Washington, D.C. are considering several credit-related consumer protections... Read More

Useful Tips When Choosing Credit Cards

Chances are you have received your share of "pre-approved" credit... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time... Read More

Credit Score - Reporting Your Financial Health

Credit score is one of the most basic, determining factor... Read More

Credit Repair, How To

Credit repair, is in a word, vital to reestablishing your... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Learn The Truth About Identity Theft

Identity theft is the fastest growing crime in America, according... Read More

Dont Trade Your Future for Todays DooDads

"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More

What Does Your Credit Say About You?

A credit report is more than just a snapshot of... Read More

New Credit Scoring Model Could Help Millions

Mark and Beth, a young married couple in their twenties,... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because... Read More

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

10 Tips To Prevent Credit Card Fraud

Imagine opening your credit card statement one morning and discovering... Read More

What is the Check 21 Act?

Check 21 is the common name for the Check Clearing... Read More

Collection Agencies: What Do They Do?

Collection agencies are businesses that collect past-due bills and accounts... Read More

Ethical Finance: Who Benefits From Our Spending?

On one hand consumers are being universally criticised for running... Read More

Credit Score ? for Scoring the Right Loan

Somebody once said, "There is always a way of knowing... Read More

Credit Card Traps: How To Spot Them On The Spot!

They arrive in your mail - a conspicuous looking mail... Read More

Choosing the Best Low Interest Credit Card

With so many low interest credit cards on offer, how... Read More