I think everyone has heard of credit reports, also called a consumers report. Almost everyone knows they have one and many of us have spent more time thinking about them than we should. But the truth is that many people have never seen their own. I know my parents lived into their eighties and never saw their own report. And I'm sure many people are still unsure of what they really are.
Understanding your personal report can help you make important financial decisions. If you are denied credit your report can help you understand what is keeping you from getting the credit you need and feel you deserve. So already, what is a credit report?
A consumers report is simply a comprehensive document that usually includes all of your pertinent personal and financial information. It will contain your full legal name and often any alias you might have used in the past or possible an alias the credit union THINKS you have used in the past. Your report will contain your soc ial security number, date of birth, past and current addresses and past and current employers.
Now this is important! This information was obtained primarily from previous credit applications you have completed. That means YOU gave the credit bureau the information they are reporting, almost! What if someone with a name close to yours applies for credit? That information often times finds it's way to your report. It could be a relative living in your town or a complete stranger living across the country but often that information hits your report.
My son is Jr. He lives in another state. His date of birth is decades from mine. His social security number is very different than mine but his information often finds it's way to my report. And to add insult to injury, MY report has an added comment that I'm now using an alias of Jr. I am not!
Your report will also include comprehensive information about any credit accounts you have had in the past or currently h ave. This could include any home or auto loans, credit cards, the cre dit limit on those card, your payment history and current balances as well as any other credit obligations you have incurred.
Be aware that public records are also included on your report. Those pesky judgments, tax liens, bankruptcies and overdue child support payments WILL be there on your credit report.
Additionally, credit inquiries will be on your report. If you applied for a loan, a credit card or any activity that required your credit be checked will cause a notation on your credit report.
Ever wonder what a credit score is and why it seems to be important? Think of it this way, your credit score is a secret mathematical equation that is derived from all the information on your credit report. The magical number is called your FICO Score. FICO stands for Fair, Isaac, and Company. This company developed the secret scoring formula and it was named after them. Have you ever had a 60 second credit check? That check was done solely using your credit score t o determine your credit worthiness. For those that have lived in the forest for most of their life and find they have no credit score that is because you must have at least one open credit account on your credit report that is at least six months old.
Your credit score is determined by your financial history. Outstanding debts, consistent late payments and collection actions against you help determine what your credit score will be. Besides affecting whether you get credit or not your credit score will influence the amount of interest your credit offer will have. Here is a news flash. the higher your credit score, the lower your interest rate and of course the opposite is also true.
Knowing and understanding your credit report gives you leverage when applying for a mortgage, car loan but will also affect your renting an apartment or house and even getting a job. Have you seen your credit report? If not you need to check yours as soon as possible. What if your fil e contains errors and stops you from getting credit, an apartment or a job. Keep the surprises for your birthday not your financial life.
About the author: Tom Sheltron is a 20 year Credit Repair consultant and writer. If you need to deal with the Credit Bureaus or have credit repair issue, please download a free copy of Credit Repair, Do it Right, Do it Yourself right now. The information is a valuable tool in your fight to repair your credit and raise you credit score. Don't delay any longer. Download your FREE copy at: http://creditrepair4america.com/ Do it now and start your journey to having the things in life you deserve.
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