What Does A Credit Report Contain?

A credit report is a tool used by lenders to determine a person's credit worthiness.

Credit reporting agencies often gather information about the financial habits of individuals, and collating it to form a credit report. So what does a credit report contain? It is usually comprised of extensive information regarding your credit history.

Exactly what does a credit report contain can be classified into four parts: the identifying information, credit history, public records, and inquiries. The identifying information consists of the following personal data: name, current and previous addresses, Social Security number, birth year, current and previous employers, and if married your spouse's name. The credit history deals with information regarding accounts or loans you have with retailers, banks, credit card issuers, and other lenders. Moreover, this section includes information on your current and previous credit, account number/s, and the name of your creditor/s. It also includes other details: when the account was opened, credit type (installment or revolving), total amount of the loan or the credit limit on your credit card, fixed monthly payments, how much you still owe your creditors, account status, account name (if joint account or otherwise), and payment habits. These information usually stay on your credit report for seven years, starting from the date it was initially reported. If any inaccurate information is in your report, you have the right to question it and have it withdrawn. Public record information consists of facts that have been stored in county and state court records, such as tax liens, monetary judgments, and bankruptcies. Inquiries may imply that you have been applying for new credit and could be deemed by credit grantors as risky behavior.

Aside from the question what does a credit report contain, many people would want to know who uses it and why. A credit score is derived through the credit report, which is used by financial institutions in verifying your credit reliability. Lenders, insurers, creditors, employers, proprietors, courts, cell phone companies, and utility companies often use these reports. These entities are granted legal access to your credit report so that they can appraise your finances and determine what rate should apply to you.

What does a credit report contain aside from your credit history? A credit risk score may be added to your report when asked by a credit grantor. This is not often included in the consumer review reports, because the guidelines used in computing it vary widely. In sum, it is wise to maintain a good credit report since this would mean to credit grantors that you have a good financial standing and will ultimately put you in a good position to be granted access to attractive credit and financial tools. Ultimately, it is recommended that you know the answer to the question, what does a credit report contain? So that you would be better equipped to handle your finances.


Source: Credit Cards For People With Bad Credit Rating

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