What is a Credit Report

Posted on May 21, 2015 in Credit Report

A credit report details specific information about individuals and is used to evaluate your applications for credit, insurance, employment, and when looking to rent a home. Credit reports contain information about where you live, how you pay your bills, whether or not you have been sued or arrested, and if you have ever filed for bankruptcy. This information is collected by three nationwide consumer reporting companies and distributed to creditors, employers and other businesses.

Credit reports are important because they are the main piece of information used by banks and creditors when applying for loans, credit cards, or mortgages. If you have a low credit score it can be impossible to obtain a new loan or credit card, making it difficult to make significant purchases. Since your credit score is so important it is recommended that you monitor your credit report closely with free annual credit reports. Each of the three major credit reporting bureaus offer a free credit report to consumers so that they can monitor their credit score. If you see a mistake on your report you will need to contact the reporting agencies as quickly as possible to have this error removed, so that it does not continue to negatively affect your credit report.

There are several different ways you can receive a free annual credit report, with the most common being through a website, phone call, or mail. The easiest way to obtain your report is through a website such as annualcreditreport.com. Every 12 months you are entitled to one free credit report, and this is the quickest way to obtain yours. By logging onto a website such as annualcreditreport.com you can quickly fill out the necessary information and receive your credit report in a matter of minutes. Here you will be able to see what your credit score is and what is negatively affecting your score. Once you know what is on your credit report you can then take the necessary steps in removing those items so that your credit score will start to increase. When your credit score starts to improve you will have a much easier time opening a new credit card or being approved for that home loan.

A person's credit score is one of the most important things they have associated with them. If you have a bad credit score you will have a much more difficult time being approved for certain lines of credit or loans. In order to monitor your credit report you should be taking advantage of your free annual credit report every year. By looking at your credit report yearly, you will be ensuring that there are no errors on your report that can negatively influence your credit report. If you do find an error you will want to report it to the major credit bureaus so that it can be removed from your report. Having a clean credit record is one of the most important things you can have as adult, and monitoring your score through a free annual credit report is the easiest way to make sure you continue to have a high credit rating.

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