Your credit report is one of the documents you will depend on most during your lifetime. The details listed are used to calculate your credit score, which lenders rely on to determine your eligibility for loans and assign rates. Given the influence of your credit report, it’s imperative to review it regularly.
Familiarize yourself with the information in your file, and work to optimize your credit standing. The types of information contained in your credit report include:
Verify that all the personally identifying information indicating who the financial data belongs to represents yourself. Errors in names, address or employer could indicate identity theft. While these errors won’t affect your credit score, it’s best to maintain an accurate and up to date file. These details are ones that you would normally include on a loan or job application and include:
Name, Date of birth, Social Security number, Address, Employment information
Your credit report will list every credit account you have used in the last seven years. This includes mortgages, student and auto loans, credit cards or any installment based agreement. These accounts make up the heart and soul of your credit report. The way you have managed your debt and the repayment of it are strictly recorded each month. The account details represented in your credit report include:
Type of account, Date the account was opened/closed, Credit limits, Loan amount, Account balance, Payment history
Public Records Information
Unpaid debt is a matter of public record and is therefore included on your credit report. For example, if you fail to pay as agreed and a creditor sells your account to a separate agency for them to pursue collection, this new action is reported to the credit bureaus and your report changes. Information that is considered public record includes:
Bankruptcy, Foreclosure, Tax liens, Collections, Judgments, Wage garnishment
When you apply for credit lenders pull your credit report and score to check your qualifications. Your applications for credit are not considered lightly, as they represent you’re seeking additional financial resources and could add strain to your monthly budget. Your applications for credit are recorded on your credit report and are what’s called a hard inquiry.
Knowing the different types of information listed in your file will make you more aware of the factors that influence your credit standing. Obtain a copy of your credit report regularly and ensure the details listed are accurate.