Credit Reports

Imagine a document that can affect whether or not you will get a mortgage for a new home, a loan for a new car or will impact how high of an interest rate you will have to pay for a loan. There is such a document called your credit report.

Your credit report contains information about your financial history and performance with creditors. From the first time you borrow money or apply for credit, a credit file is created. Lenders including banks, credit unions and retailers send information about your financial transactions to credit reporting agencies.

There are four types of information found in a credit file. It will contain identification information - your name, verification of social insurance numbers and date of birth. It will also include your address, some previous addresses, marital status, where you are employed and previous employers.

The credit file will contain credit information. Some credit accounts include bank loans, retailer credit and credit card issuers. A variety of information about these accounts may be found in the credit information. There can be information on the payments made, the balance on the loans and credit and past due amounts. Public record information will also be found in a credit file. This is any information found in court records. This can be information about collections, bankruptcies, judgments and etc. The credit file will also show inquiries that are made on a personís credit history when they apply for new credit. If there are too many recent inquiries on your credit report, some lenders see this as a sign that you are overextending yourself.

There are resources for you to access your credit rating. Knowing your credit rating can be used to your advantage. If you have great credit, you can negotiate better interest rates. If you find that your credit report is not good, you can start working to repair your credit. First, you can make sure there are no errors on your credit report. Then, you can locate the areas where you need improvement so you can work towards a better credit rating.

Accessing your credit report will allow you to see what lenders will see. You can obtain a free report each year from a credit company. This can be done by mailing a request for your report. Another way to access your credit report is by using the Internet. You can do so quickly and inexpensively.

Remember your credit report contains important information that can have a major impact on your life. Knowing your credit rating can be a great help. If you have good credit, you can work with lenders to receive the lowest interest rates possible. On the other hand, if your credit is poor, you can identify your weaknesses and begin working to repair your credit.