What’s in your Credit Report?

If you have less than perfect credit and are thinking that you may not qualify for a mortgage, car loan or credit card, think again. Rather than listen to what friends and family may be telling you, find out for yourself what your true circumstances are. Start by getting a copy of your credit report from Equifax, Experian, or Trans Union, the major credit bureaus.

You may be thinking “What’s in my credit report and how does my credit report affect me?” The answer to both is “a lot.” Your credit report is a compilation of records of all the credit items you have had and a history of your record of payments.
Detailed Records

Your credit report starts with a record of your social security number, current address and telephone numbers and may contain your spouse’s name and social security number and your date of birth. Any public records linked to your name will be displayed on your credit report, including bankruptcies, judgments against you and the like. Next up are detailed records of your credit cards, mortgages, student loans, car loans and most other credit items. Utility companies, rental properties and many other types of creditors may report to the credit bureaus as well.

Most entries on your credit report will show the date the credit item was opened, the credit limit of the account, the highest balance you have used and the monthly payment due. A date next to each item shows the last date you paid and another entry shows whether the account was paid, charged off or still active.

Signs of trouble brewing

Your credit report is your financial scorecard and can make all the difference in your being turned down for a loan, credit card, insurance or employment. Late or unpaid items on your credit report indicate to a potential lender that you may represent a risk at some future date, as indicated by your past behavior.

Paying a higher interest rate on a car loan is a painful reminder that you may have been a little careless in the past. But higher interest rates are only a part of what you may pay. Your insurance application could be turned down and so could your job application as many employers now treat poor credit as a predictor of job performance. Rental and utility companies frequently run credit checks before allowing you service and a spotty credit record may mean hefty deposits on your part.

Errors on your report

It is possible that your credit report contains erroneous information meant for someone with a closely related social security number, a similar name or a nearby address. Even errors in addresses could cause good credit information to be left off your report, and that can have as much effect on your credit score as bad news. Should you find any errors on your credit report, send a formal request to the credit bureaus and have the incorrect information removed.

You are allowed by law to request a detailed statement substantiating your debt from any company that posts information to your credit report. The Fair Debt Credit Reporting Act requires creditors to give you a response within 30 days of your request, otherwise they must remove the item from your credit report.

Start now by calling the three main credit-reporting agencies: Trans Union (1-800-916-8800), Equifax (1-800-685-1111) and Experian (1-866-200-6020) to get a copy of your credit report.

For more tips on credit matters visit www.my-credit-report-score.com