What you should know about Credit Reports

If you are determined to take control of your financial life, one thing you should consider doing is getting your credit report. A credit report is vital as it can impact aspects of your life, such as purchasing a car, renting an apartment, getting a credit card, and loans.

What is in your credit report?

A credit report contains all the records of your current and past debt. It is a summary of your payment history.

Personal Information

Your credit report has personal information such as your date of birth, social security number, past and previous addresses, employment information, and phone numbers.

Credit Account Information

They have information about the different loans you have gotten, such as mortgages, student loans, and information about payment history, account balances, and account payment histories.

Public Records Information

Your credit report also has information about all the entities that have requested your credit report, as well as information on filing for bankruptcy and child support payment and lawsuits.

Your credit report is a record that will follow you through life. That’s why it is essential to understand it and keep it looking good. In addition, all the information within your credit report will affect your creditworthiness, which banks and other institutions want to know before they give you a loan. Employees may also request your credit report, especially for individuals in the financial field.

How to get your Credit Report?

Individuals can access a free credit report every year from any three national bureaus: Experian, TransUnion, and Equifax. Their website is AnnualCreditReport.com. Only this website has the authority to provide you with a free annual credit report.

Why information on your different credit reports may differ

As mentioned before, there are three authorized Credit Bureaus, and it is recommended that you request a report from each of them. As Clean My Credit explains, sometimes your financial information that financial institutions, department stores, and others share with one bureau is not shared. Therefore, it is your responsibility to gather all the reports, compare them, and ensure everything is good to go. 

Why should you check your score?

Here are two of the main reasons you need to check your credit score regularly:

1.Check to ensure the information is up-to-date and accurate.

This is especially important when you are about to apply for a loan or a new job. If there are any mistakes, you can contact the bureau to have them update them.

2. Check to ensure you are not a victim of identity theft.

For example, if you notice suspicious activity on your report or several errors, it might be a sign that someone has stolen your information, for example, name or social security number, and is out there making purchases and taking out loans with your identity.

It’s time to take your finances in hand. Your credit report can help you monitor and improve your spending. So have a look at your credit report to know what is happening and what moves you can make with your current credit score, and how you can improve it.

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