What Is A Credit Report Used For

Your life as well as your financial security may very well depend on how others view your credit report. A prospective lender will pay a credit reporting agency fro your credit report. Anything negative on your credit report will have an adverse effect on a loan application. You won’t necessarily get a chance to explain these negative factors to a lender. For example, you may miss an auto loan payment because of a banking error or change of address. No one will get to hear your side of the story. A bad credit report can mean the difference between buying your dream home and staying where you are. This makes keeping track of your credit report especially important if you were considering that loan in the near future.

There is a wealth of personal information on your credit report. Information pertaining to your credit such as the number of credit cards you have and your timeliness and paying bills is reported. Other personal information like changes in address, whether or not you have ever been sued, claimed bankruptcy, and even if you’ve ever been arrested are all present on your credit report

Experian, Equifax, and Trans Union are the three major credit reporting agencies in the United States. Their function is to collect organize and store your information on their databases. When a lender requests it, these companies will sell them a copy of your credit report.

There are several types of businesses who will by your credit history information. If you are looking to move into a new apartment, the landlord or property owner will most likely run a credit report to see if you will pay your rent when it is due. Prospective employers will want to know your credit history to see if you have ever been sued or have financial problems. When you apply for a credit card, the credit card company will want to know if you are worth the risk and insurance companies might want to check if you’re likely to pay your bill on time. Mortgage brokers and banks will also want to see your credit history. You may be denied a loan if your credit is poor, but you may also be eligible to receive special rates if you have good credit.

There are four things that any lender would want to know before loaning money to a person. The first thing they want to find out is exactly who you are. Your name (including any aliases), social security number, date of birth, and addresses both past and present are the most basic pieces of information available about you on your credit report. The second thing a lender wants to know about is your accounts this includes bank accounts credit cards, outstanding loans, and anything pertaining to other debt that you may have. Third, a lender would want to know matters of public record. Tax liens, bankruptcy, and any other judgments against you fall into this category. Finally, a lender will want to know about any other inquiries that have been made regarding your credit report within the last 24 months.

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