What Are Credit Reports And How Do They Affect You?
Credit reports are a detailed record of all of your credit activities from how many credit card accounts you have, how many loans you may have taken out, and it shows whether you are paying your monthly payments on time or have a lot of unpaid bills. If you have a lot of negativity on your credit reports, you will not be able to apply for a loan, buy a house, or even apply for a credit card. Sometimes you are even unable to get a checking account if you have a very negative credit report. Credit reports come from a consumer reporting agency (CRA) that gathers and then sells your credit information to creditors who may be considering granting you credit, government agencies, or anyone who has a legitimate business that needs your credit report information such as a landlord before they will approve you to move in. There are different types of information on credit reports such as your full name, current and previous home address, your social security number, date of birth, information on your spouse and your current and past employers. Credit reports also include previous and current financial accounts you have had or now hold such as bank accounts, retailers, credit card, utility companies, loans, mortgages, any co-signers and your repayment pattern over the past two years. Credit reports also include public record information such as whether you have had a bankruptcy, tax liens, or any monetary judgments. It also includes recent inquiries on your credit report. It list the names of anyone who has obtained copies of your credit report whether it be for a loan you are applying for or a checking account over the past year. A good standing credit report can make it very easy to obtain a much needed loan if you are planning on going to college or purchasing a car or house. Keeping your credit up to par is very important and can bring you great things in the future.
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