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What Is A Credit Report?
By: John Mussi
Ever wondered what is a credit report? If you've ever applied for a credit card,
a personal loan, or insurance, there's a file about you. This file is known as
your credit report. It is full of information on where you live, how you pay
your bills, and whether you've been sued, arrested, or filed for bankruptcy.
Consumer reporting companies sell the information in your report to creditors,
insurers, employers, and other businesses with a legitimate need for it. They
use the information to evaluate your applications for credit, insurance,
employment, or a lease.
Having a good credit report means it will be easier for you to get loans and
lower interest rates. Lower interest rates usually translate into smaller
monthly payments.
Nevertheless, newspapers and the Internet are filled with ads for companies and
services that promise to erase accurate negative information in your credit
report in exchange for a fee. The scam artists who run these ads not only don't
deliver - they can't deliver. Only time and a plan to repay your bills will
improve your credit as it's detailed in your credit report.
Here are details of the type of information that is collected and added to your
credit report:
Identification and employment information:
Your name, date of birth, national insurance number, employer, and spouse's name
are noted routinely. The consumer reporting company also may provide information
about your employment history, home ownership, income, and previous address, if
a creditor asks.
Payment history:
Your accounts with different creditors are listed, showing how much credit has
been extended and whether you've paid on time. Related events, such as the
referral of an overdue account to a collection agency, also may be noted.
Inquiries:
Consumer reporting companies must maintain a record of all creditors who have
asked for your credit history within the past year, and a record of individuals
or businesses that have asked for your credit history for employment purposes
for the past two years.
Public record information:
Events that are a matter of public record, such as bankruptcies may appear in
your report.
About the Author:
John Mussi is the founder of Direct Online Loans who help UK homeowners find the
best available loans via the
www.directonlineloans.co.uk website.
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