Do you have a mortgage, credit card or a debt that needs to be paid? Then, it is highly likely that you have a credit report. A credit report is a comprehensive record of your individual credit history. Credit reporting companies commonly known as customer reporting agencies or credit bureaus collect financial data about you and this data is used by lenders and other financial institutions to determine your creditworthiness. Why is a credit report so important? What type of information does it contain?
Well, here are 4 things that your credit report says about you.
1. Your Identity Information
Your identifying information will always show up on your credit report. This includes your full name, your nickname, your spouse’s name if any, year of birth, current and previous addresses and your employer details.
Always ensure that your personal information is up to date. An incorrect address can cause serious problems for you. It is always a good idea to request for a copy of your credit report from the credit reporting agency and check for any irregularities.
2. Are You Insurable
Insurance companies want to know your creditworthiness. This is why they will routinely review your credit report. Since the insurance business oscillates around calculating risk, your insurer will always look for the highest profit possible. If you score poorly in your credit report, you will pay higher premiums and you will also be considered a risky person to insure.
Always seek professional guidance regarding insurance in order to improve your credit score and avoid paying very high premiums.
3. The Negative Items
Negative items on your credit report can severely hurt your credit and cost you thousands of dollars every month. Incorrect late payments, bankruptcy filings, write-offs, and discharges could be the reason why lenders do not wish to do business with you.
Always ensure that you make payments on time. Check the collection section of your credit report. Are there obsolete accounts? Ensure that a schedule is made for all the obsolete accounts to be deleted. Your public fillings should always be correct. An updated copy of your credit report will give you all the details.
4.Your Account Information
Your account information has a significant impact on your credit score. Your loan and credit accounts will form the bulk of your credit report. Your lenders will also see the loan amount and the credit limits and will study your payment pattern for at least previous two years. When reviewing your credit report, check if there are any accounts that you don’t recognize and notify the credit reporting agency immediately.
Check your financial links with other people; if you had applied for joint credit with a family member and you opted out, ensure that those accounts are closed and pulled out of your credit report to avoid unpleasant consequences on your part.
There you go; 4 things your credit report says about you. Looking for the right guide to credit repair? At crediful.com you will learn how to get out of debt and you will also get the chance to evaluate your best financing options.