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Credit Reports
Lee Traupel
A credit report is
maintained for virtually every consumer in the United States who has had
any financial activity of any kind and/or who as had a credit card or
banking relationship of any type. A credit report is based on a
numerical rating system with the higher a score (an excellent ranking is
considered 750-850) the better.
Most financial
institutions refer to a consumer's credit report as they are making a
decision on providing a loan and the interest rates that you are
provided can in many cases also be based on your credit report or
score. The actual credit report is not maintained by your local bank or
mortgage broker but by a third party that combines and integrates
information that is compiled on your payment history by virtually all
financial institutions that you work with in any capacity. A consumer
can ask for and receive a free copy of their credit report from
virtually any financial institution that you are working with and/or
generate one from any number of online resources.
In years past a credit
report could be difficult to generate but this is no longer the case. A
free credit report typically contains the following contents: Personal
information: it contains details like name, address, social security
number, date of birth, license number, and employment information etc.
Banking Relationships:
this category is about your relationship with the bank on monetary
terms. The details mentioned are type of account, the date you opened
the account, the credit limit, the account balance the history of your
transactions.
Inquiries: this is the
section that contains a list of the people or firm that had an access of
your credit report. It contains both the 'voluntary' and 'involuntary'
inquiries. It means the ones whom you allowed, and sometimes the
creditor asks for the report to keep you updated with other information.
Public records: it is
something not about you but a general record on issues linked with
credit cards such as bankruptcies, suits, foreclosure, lines, and
judgments. If you discover errors in your credit report you can in fact
ask the vendor who has made the mistake to "repair" or modify your
credit report so that it is accurate. But, you must in most cases
provide sufficient documentation to substantiate when and where a
mistake was made on your credit report and the process can be tedious
and time consuming as you are in many cases working with large
bureaucratic companies who do not move quickly.
Lee Traupel is a well
known Author who writes for
www.411debtsolutions.com |
