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.

---

Credit Card Expenses Are Killing Your Budget!

Do you know the costs associated with your credit card?... Read More

Convenience Can Be Costly

You've just opened your credit card bill and attached to... Read More

Free Credit Reports Now Available From the FTC

The Federal Trade Commission (FTC) has set up a new... Read More

Choosing The Best Credit Card To Apply For

Always shop around to get the best deal when choosing... Read More

Learning the Disturbing Facts about Credit Card Debt

When I received my first credit card in the mail... Read More

10 Ways of Reducing the Risk of Identity Theft

1- Check your credit report regularly2- Secure personal information in... Read More

To Repair Credit Is No longer Satisfactory - Learn How To Earn A Millionaires Credit In 30 Days...

To repair your bad credit does not necessarily mean that... Read More

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Credit Cards: Pros and Cons

Sure, there are a lot of problems with credit cards,... Read More

Tips for Choosing a Credit Card Company

Credit Cards are essential for any consumer today. However, when... Read More

UPS Delivers the Goods, Your Identity

Well now we add CitiGroup and UPS to the Identity... Read More

Fixing A Credit Report

Fixing a credit report starts with seeing what's on it.... Read More

What Does Your Credit Say About You?

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

Credit Card Tips

Here are some useful credit card tips for you to... Read More

Which Business Credit Cards with Reward are the Best?

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

19,178 Identity Theft Victims Per Day - Are You One Of Them?

Identity theft statistics are shocking. And we are told that... Read More

Building Business Credit

Most businesses want to be able to borrow money when... Read More

Rate Tarts Losing Ability to Cherry Pick

A "rate tart" is someone who switches from one zero... Read More

Credit Card Rates - Negotiating Rates with Your Credit Card Company

Ok, let's face it, everybody hates high credit card rates,... Read More

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy... Read More

Understanding Your Credit Score

When you apply for credit one of the first things... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

How to Save Money on Your Credit Cards

Credit card companies make their money on the 85% of... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might... Read More

How To Eliminate Credit Card Debt

There is almost nothing more troublesome than having too much... Read More

Start Building Credit Fast!

There are a couple of reasons for this. You can... Read More

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type... Read More

Avoiding College Credit Card Traps

Congratulations college freshman! You're about to embark on one of... Read More

Your Credit Card May Be Costing More Than You Think!

Do you know what your credit card is truly costing... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to... Read More

Everything You Always Wanted To Know About Your Credit Report

Your credit report is a very powerful report that essential... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More