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Credit Reports

What are Credit Reports?

Credit Reports are used by banks and credit credit card companies in order to determine your credit-worthiness when applying for any form of credit. If you have ever made a car payment, house payment, or credit card payment then you are creating a credit history for all future prospective money-lenders to see.

Every 30 days the companies with which you do business with will prepare and send off a credit report to the credit agency about your dependability of making your payments and the general status of your accounts.

Why is a Credit Report Important?

Depending on your diligence and responsibility with making on time payments to all credit accounts will determine whether there will be a negative or positive affect on your credit reports. You can be sure that if you are making late payments or if you miss a payment that negative comments will be put into your credit report. The opposite is also true, if you continue to make payments, pay early or on time and pay off accounts early or on time. These practices will help you to create a credit report with little to no blemishes.

Before credit is issued in its many forms, the bank will take a look at your credit score to determine your credit-worthiness. If it is determined that you have an unblemished report, you will likely be offered the credit you seek and usually at a much better interest rate than those with lesser credit.

What do Credit Reports Look Like?

In their beginnings, credit reports were very difficult to read and would not have helped the common individual seeking to improve or correct their credit reports. They were written with the banks and lenders in mind. They have come a long way and your credit report is much easier to read for the layman. But there are still some points within your credit report worth clarifying.

What are creditors Looking for in your Credit Report?

Listed below are some of the main things banks are looking for on a credit report:

• Number of accounts opened
• Duration of the length of time credit accounts have been open
• Number of credit checks by other banks in a short amount of time
• Payment history
• Accounts paid on time
• Balances paid off early or on time
• Employment history
• Residence history

How can I Obtain a Copy of my Credit Report?

Where this information is sent and who gets to look at are two very important points to understand about your credit reports.

There are 3 credit bureaus to which creditors send in their credit reports every 30 days or so. They are: Experian; Equifax and TransUnion.

Not all lenders send their credit reports into all three credit agencies. That is why it is important to get the complete story of your credit-worthiness by obtaining a copy of your credit reports from all three credit agencies.

Request Your Credit Report