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All about Credit Reports

By Janet Lacey
Published: Friday, September 4th, 2009

The use of credit cards has increased considerably over the last few years. Most of us nowadays finance our cars, homes and other assets through mortgage and loans. Students also take loan for their studies. In all such circumstances credit report becomes a very crucial statement to get loan. As we would not lend our money to any stranger, similarly the finance companies, retailers and banks will not provide you loan without accessing your credit report. Thus we can say that a credit report is your record and history of all your credit activities including the details about your credit card accounts, loans and their balances and payments. If any action against you is taken with respect to unpaid bills then the same is also mentioned in the report.

Consumer Rating Agency (CRA) are the companies which gather and sell all the credit information. These companies store the information in large database and then take a fee for supplying them to the needed parties. Credit bureau is the most common type of CRA in operation. After all the credit information is gathered by these companies, a credit rating is given. A good credit rating shows your good record whereas a bad credit rating definitely limits your finance opportunities in future.

The credit reports made by CRA are not available for everyone. They can only be provided to few selected requestors which include creditors who have given you loan or are planning to give you loan, insurers, employers, government agencies and any such person who has legitimate business need for this information.

The credit report is mainly made up of four main types of information which include Identifying Information, Credit Information, Public record information and recent enquiries.

The identifying information contains your details regarding name, addresses, birth year, and social security number, information about spouse and about past and current employers. The credit information is the most crucial part of the report which contains details regarding your bank accounts, credit cards, loans, retailers, utility companies and about the payment pattern of your loan over the last two years. Public record Information mentions the information about records of the state and country bankruptcy, monetary judgments and about tax liens. The recent enquiries have the details about the people who have obtained the copy of your credit report in the past two years.

Thus when all these information are compiled together it takes a shape of complete credit report which is a very important document to increase your finances and to make them stable.

It is also very essential to check and go through your credit report before applying for any credit in order to avoid any unforeseen surprises. Many a times it might be possible that there is some error in your credit report and if it happens so then immediately contact the credit reporting agency.
So just avoid any type of delayed and non payment of loans and credit cards and keep your credit history good so that you can get a good ranking on the basis of your credit report.

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