What is a credit report and what shows up on it?

by Christian Silmaro Christian

A credit report contains your credit accounts. Lenders report on every single account you have started with them. They usually report your account type such as auto loan, bankcard, mortgage etc., the date of opening of your account, loan amount or your credit limit, the payment history and your account balance.

Your credit report keeps a record of your credit types, duration of your accounts and whether your bills have been paid timely. It informs lenders the amount of credit you have availed yourself of and if you are looking for new credit sources. It provides the lender a wider outlook of your credit history than one gets from other sources of data like customer data of a bank. A credit report also incorporates facts about your address, and if you have been arrested or sued, or if you have filed for bankruptcy.

Despite the fact that each Credit Reporting agency reports these facts in different formats, all credit reports essentially cover the same sorts of information. To identify you, your birthdates, social security number and employment data are utilized. Credit scoring does not use these aspects, and the information gets updated from the statistics you deliver to your lenders.

When you make an application for a loan, you give permission to your lender to demand for a copy of your credit report. In this way inquiries get recorded in your credit report. In the inquiries section there will be a list of all who gained access to your credit report during the last two years. Also, credit reporting agencies gather public record data from county and state courts, as well as evidence on past due debt from collection agencies.

There are three major credit bureaus – Experian, Transunion and Equifax. They keep up files on millions of borrowers. While making decisions on credit, lenders buy credit reports on their possibilities, customers and applicants from the credit reporting agencies. Lenders as well as other organizations take advantage of the information in your credit record in order to assess your applications to loans, insurance, credit, or renting a property.

Credit bureaus maintain credit reports and they are issued to insurers, creditors and other organizations as allowed under law. As you make an application for a new credit line for instance, a new credit card – the creditor asks for a copy of credit report from the credit bureaus. In order to ascertain your credit worthiness and interest rate, the creditor will appraise your credit report, a credit score or any other information you have supplied, like debt or income information. If they approve the new card, it will be contained in your credit report and updated every month.

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About Christian Silmaro Advanced   Christian

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Joined APSense since, November 11th, 2014, From New Delhi, India.

Created on Dec 27th 2017 05:38. Viewed 260 times.


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