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Get to Know Credit report concept

By Janet Lacey
Published: Monday, March 12th, 2012

Credit reporting is the most important and beneficial business action throughout the world. All your credit information is collected and maintained by the credit reporting departments. They provide this information to your lenders in case you apply for more credit or new credit card. This department is not responsible for the lending solutions. Such credit reports influence our business as well as our personal lives in several ways. There are various credit report agencies or departments in the United States.

Why to get Credit Reports?

People with good credit history do not suffer from the credit reports agencies. These agencies are reputed, and therefore you need not worry about denting your credit credibility. There are three credit reporting agencies that serve the people in the US. They are named as Experian(TM), Equifax(TM), and TransUnion(TM). You are required to submit your credit report to these agencies once each year.

Your credit history brings a great impact on the loans payment, ability to rent, or to buy a property, as well as, the insurance rates offered by the insurance company. It also affects the employment openings in the future.

You also get the facility to freeze the Credit reports, if you feel that someone else has opened or might have opened a new credit account in your name. The lender will first check your credit report and provide or extend the credit accordingly.

Avoid Mistakes on Credit Reports:

You may face several mistakes on your credit reports. Just follow below the given strategies to avoid these mistakes:

  1. Never take credit cards that you feel you will never use. The unused credit card may affect your score, so it makes you a risky candidate from the point of view of the lenders. Also, in case if you forget about your old credit account and stop making payments, it will result in lowering your credit score.
  2. It is advised not to make mistakes of having too many inquiries on the credit reports. The number of inquiries will indicate that you have been refused by several lenders, which will tar your credit image and history.
  3. Never use too many online loan rate comparisons. It is easy to obtain the comparisons, but credit reporting agencies count them as the number of inquiries made.
  4. Do not stick to one credit report. You need to contact all the three major credit reporting agencies to enhance your credit scores. It is always good to have three or more credit scores.
  5. Never close your multiple credit accounts at the same time. Do not make a mistake of closing long-term credit account that you need.
  6. If you have no loans or credit transactions in the report, it will also hinder your credit scores. Lenders always want to look at your credit history.

You should discuss with a professional regarding your credit report queries. Information shared here will also help you to a great extent.

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