How Does My Credit Report Affect Me

Whenever you apply for a loan, credit card, or a mortgage, your credit rating will be evaluated. Even when you apply for jobs, insurance, or look for an apartment, your credit may be checked. In these situations you should ask yourself, will my credit report affect me. Take into consideration that every time you use credit your transactions are most likely being electronically recorded. The three largest credit bureaus in the United States are Equifax, Experian, and Trans Union. These agencies sell your information to any business or lender who requests it. Typically, those who check your credit are trying to find out if you are a trustworthy person when it comes to financial obligations. Your credit report can reveal even minor financial setbacks that you may have suffered. This in turn can cause you to be denied credit or service.

It is important to remember that a low credit score isn’t the only thing that prospective lenders are concerned with. When the business receives a copy of your credit report they frequently look beyond the credit score. Surprisingly, the number and type of inquiries into your credit history can hurt your credit rating. Anytime your credit is checked for the purpose of a bank loan, auto loan or mortgage, your credit score can drop as much as five points per inquiry. One or two of these will not affect your score much.

Applying for several loans a one time however, can have a serious negative impact on your credit report. If several inquiries for the same purpose are made within 30 days, your credit score won’t be greatly affected. Inquiries for the purpose of employment, pre-approved credit, or for your own copy of your credit report will not negatively affect your credit rating.

Matters of public record that can be found on your credit report can be a red flag to businesses that are checking your credit. An eviction is one of the matters of public record that will show up on your credit report. Usually, evictions are lengthy processes that are legally and financially draining. There is no winner in the eviction process. When it comes to eviction, the landlord loses out on rent while the tenant who is being evicted ends up with bad credit. Technically, rent is considered a monthly credit obligation. In effect, eviction is just like repossession due to delinquency of a loan.

Landlords frequently screen applicants for evictions in their history. The evictions process is lengthy and the rent and has usually been delinquent for several months before the eviction proceeding begins While good people do get evicted from apartments, the property owner may very well view this as a record of being irresponsible and untrustworthy. Utility companies such as cell phone, cable, and Internet providers may also look at the section of your credit report dealing with matters of public record. Even though these public record matters don’t seem that they would pertain to a credit report they are rather important.

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