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April 23rd, 2008
We all have heard about what credit scores are and how it is important to have a high credit score, but do you know what is actually on a credit report? For many they have taken a look or heard their credit score, but they do not actually know where the number is coming from or what it means to them. There are many different contributing factors that derive a credit report and it is very important to your financial well being that you know all the components. A few things that can be found on a credit report are your financial past, your bill paying ability, and what current financial obligations you have. It is also important to know who can take a look at these reports. Creditors look at your credit report to determine how much can be lent to you and the risk associated with lending to you. A few others that may look at a credit report are employers, landlords, credit card companies, and other companies that would be interested in your credit history.
Where Can I Find My Credit Report?
Did you know that obtaining your credit report is free? Since the Fair Credit Reporting Act (FCRA), the major companies are required by law to supply you with a free copy of your report. To obtain this you will need to submit a request for your credit report, which you are allowed this once every 12 months. You should also be aware that you can obtain a credit report upon request more then once a year, but you may have to pay and in more ways then just monetary. When you are constantly requesting reports you can actually hurt your credit score. Should you get denied from a job opportunity or if a credit company denies you then you have 60 days to put in a request for a free credit report.
Information on a Credit Report
It is important for one to be aware of what information is on a credit report just for the fact that it needs to be accurate. If the information on it is inaccurate then it can take a lot of time and trouble to get it corrected, which can hurt you financially overall. On a credit report it is important to know that your address and social security number will be and to keep it up dated should your address change. There is also a section of your past credit history and then a section of your current obligations that you have financially.
What is a Good Credit Report?
A lot of times people want to know what a good credit score is. Well, the answer to that is a credit score does not need to be perfect for it to be good. For most, starting out a low credit score is realistic and it can always be built up better and better. A good credit report is one that has a strong history of paying bills and is free of errors. Having a good credit report means staying on top of your financial well being to ensure that you are represented properly at all times.
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