What is a Credit Report?
Equifax, TRW-Experian and Trans Union
A consumer credit report (CR) is a document that contains factual records of an individual's credit payment history. It is mainly used to judge his/her credit worthiness by lenders.
The CR not only lists basic information such as your name and social security number, but other information pertaining to your credit, especially your borrowing and repaying habits. This information is collected and compiled independently by major credit bureaus such as Equifax, TRW-Experian and Trans Union. Basically, the credit report shows how you treat credit and your relationships with creditors. As people pay their bills, most lenders report credit payment history information to credit bureaus.
Your credit will determine what you can buy, what type of car you drive, and even where you can live. It is important to maintain the best credit report possible. Each person should check his or her credit report and make sure it is correct.
What does a credit report contain? Although the style, format and coding may be different among companies and credit reporting bureaus, the typical person's credit report can include the following types of information:
Personal Information
Your full name, nicknames, birth date, social security number, and current and previous addresses and employers. This information comes from any credit application you have completed.
Public Record Information
Any relevant court records, such as legal judgments, tax liens, bankruptcies, or, in some states, overdue child support. This information comes from public records. Bankruptcies can remain on your credit report for up to 10 years. Other public record information can remain for up to 7 years.
Credit History
A snapshot of your past actions. The credit report lists all loans and credit
lines in your name from recent years. Credit reports vary from bureau to bureau,
but generally they show the type of loan, the date you began the loan or opened
the credit line, the amount of the loan or credit limit, the amount you still
owe, and your payment pattern. For example, the credit report may list the number
of times you've paid late, including the times you were more than 30, 60, and
90 days late. This information comes from companies that do business with you.
Most
information, whether positive or negative, remains on your credit report
for 7 years from the date it is first reported, and then cycles off automatically.
If there is inaccurate information in your credit report, you have the right
to dispute it and have it removed.
Inquiries
A list of those who have obtained a copy of your credit report within the past two years. Inquiries indicate to other credit grantors that you have applied for new credit that could result in additional debt. Potential lenders view multiple recent inquiries on your credit report as a sign that you are overextending yourself. It's common for a potential lender to turn you down because of "excessive inquiries." This nformation comes from the credit-reporting agency. Most inquiries stay on your credit report for up to two years. To obtain a copy of your credit report click below:
www.econsumer.equifax.com
www.experian.com
www.transunion.com
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