How healthy is your credit?




What Makes Up Your Credit Report

Have you ever taken a house or car loan? If yes, then the lender must have reviewed your credit report before offering you the desired sum. A credit report refers to a statement or summary of how you repay your loans and pay your bills, what are your monthly debts, and how much credit is available with you along with other information via which a potential lender can determine your ability to repay the requested loan. After this, it becomes very easy for the lender to decide whether the loan should be given to you or not. So, if your credit report reveals that you have many debts or pay your bills quite late, the lender might not give you the loan or might lend you at a higher interest rate. Due to this crucial impact of the credit report on your status, it is vital for you to know what forms a credit report and how it can be presented accurately.

What Information is Present in a Credit Report

It is vital for you to know your credit report information so that you can offer accurate details related to your credit status. If you do not know what information goes into your report, you certainly cannot ensure accurate details, which can make the lender cancel your loan application.

First, a credit report shows your personal information such as name, address (present and former), phone number, social security number, birth date, present and former employers, and your spouse's name.

Second, credit report information includes your credit history such as records of debts paid to retail stores, banks, finance companies, and other lenders. Further, it shows information about each bank account, the date of commencement, type of account, loan amount, monthly payment, and so on. Moreover, information about the closed account or paid off loan is also revealed along with missed or late payments.

Third, the credit report information also reveals your credit worthiness via records related to bankruptcies, court issues, and tax liens.

Fourth, a small section on report inquiries also exists, which mentions the credit granters who possess a copy of the report, authorities who have the right to view it, and companies that have obtained your name and address without viewing your report. The latter obtains this information when you meet their criteria for a credit offer.

Lastly, the report shows dispute statements. Many credit bureaus do not mind accepting the statements of both the consumer and the lender for reporting what happened in case of a dispute about something on the report.

What Information is Absent on a Credit Report?

This includes bank account balances, religion, race, income, criminal records, driving records, and health problems although pending medical bills can be revealed as debts.

The above mentioned credit report information itself does not reveal that you have a good or bad credit risk. In fact, it offers the necessary data to the lenders for making the right decision. Generally, the credit report information is collected by the credit bureaus or credit reporting agencies (CRAs) by approaching the different landlords, merchants, and lenders. Once the report is made, they sell it to businesses for evaluating your credit application.

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