What Gets Reported to My Credit Report?
A Credit Article Contributed by Annie Bauers
What Gets Reported to My Credit Report?
Understanding your credit report is the first step to becoming an educated consumer. It is important to know what your credit score is an where you stand as a creditor. This is important because one day when you want to make a purchase that requires credit it will be wise on your behalf to know exactly where you tand.
What Should I Look for on My Credit Report?
When you review your credit report there are several things you should look for. The first is errors. Many consumers don't understand or know that errors can occur on a credit report. Sometimes items get reported incorrectly and it could seriously damage your credit standing and score.
Errors to look for when reviewing your treport include balances that are incorrect, debts owed that have been paid off and credit inquiries from creditors you have not contacted or given permission to.
Why is My Credit Score So Important?
Your credit score is important because that is the number that a lender looks at to decide if they will issue credit to you or not. Your credit score is a bais for the lender to decide if you will pay the loan back and make your payments on time.
Every payment you have ever made late is rated on your credit report and effects your credit score. In addition any charge offs or bankruptcies are also reported and effect you score. Another important aspect of your credit report is how much you owe and to how many lenders
. All of these are very important to your credit score and are recorded on your report. If something is reported in error you can now understand how it could be very damaging to your credit status.
What Else Gets Reported by the Credit Agencies?
Medical history, past income and other personal information to that nature are not recorded on your credit report. If you apply for credit and are denied this will be put on your report. So when filling out all of those credit card applications you receive in the mail, keep in mind it will show up on your report if you are denied.
Not everything that is reported by the credit agencies is negative. When you pay off a loan on time or make regular payments this is also recorded. These are positive things and will help raise your credit score to qualify for more credit in the future.
Can I Change My Credit Report?
Yes, you can change errors that are on the report. You may have to get some letters and make some phone calls but the trouble you go through will be worth it in the long run. It is important to remember how important your credit rating and credit report are. Taking that into consideration you can understand the importance of fixing any errors that appear on it.
If your credit report shows a low rating you should not just give up because it is possible to make changes.
