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What is a Credit Report? By John Mussi

Ever wondered what is a credit report? If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. It is full of information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy.

Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease.

Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.

Nevertheless, newspapers and the Internet are filled with ads for companies and services that promise to erase accurate negative information in your credit report in exchange for a fee. The scam artists who run these ads not only don't deliver - they can't deliver. Only time and a plan to repay your bills will improve your credit as it's detailed in your credit report.

Here are details of the type of information that is collected and added to your credit report:

Identification and employment information:

Your name, date of birth, national insurance number, employer, and spouse's name are noted routinely. The consumer reporting company also may provide information about your employment history, home ownership, income, and previous address, if a creditor asks.

Payment history:

Your accounts with different creditors are listed, showing how much credit has been extended and whether you've paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.

Inquiries:

Consumer reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.

Public record information:

Events that are a matter of public record, such as bankruptcies may appear in your report.

You may freely reprint this article provided the author's biography remains intact:


John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.




See Also:

Credit Report Secrets: Do You Know What They Reveal?
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How to Understand Credit Report
Now that you have obtained your credit report, the first thing you need to do is read through it and understand what it all means. Don't feel bad if you don't understand what the credit report is saying to you. Most credit reports are coded because it allows shorter time for the computer to ... more...

Comprehending a Credit Report
Obtaining a credit report is an excellent way to begin taking control of your financial future. It's recommended that you review your credit report once a year, not only to be aware of your standing with creditors but to also keep abreast of errors and fraud. However, once your report arrives you ... more...

Making Sense of the Information in Your Credit Report
If you've ever applied for a credit card or loan, youve probably had your credit report reviewed by the lender. Your credit report has a huge impact on your financial future, so its well worth your time to be sure that you understand what your credit report says about you.Even if youre not ... more...


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