Credit Report Advice-from Someone Who Can Relate That is Not an Expert!

A Credit Article Contributed by Shanika P. Carter

What is a Credit Report?

A credit report is a file of a person's credit history and financial standing. If a person has established any type of credit, such as having a credit card in their name, this account should be listed on a credit report. The credit report also lists personal information, such as current and past addresses, employment,and date of birth, in addition to a person's credit score.

What is a Credit Score on a Credit Report?

A credit score on a credit report can be described as the number of points that has been calculated according to the information listed in the credit report. The credit score is used to determine if the applicant is worthy of credit. The higher the score, the greater the risk a person is to the person giving the credit. A credit score, which is only one factor in determining credit worthiness on a credit report, can range from 330 to 830. Other factors can include employment history and salary.

Also, the desired number for credit scores can be different from person to person; an applicant with a score of 775 might be denied credit by one lender, but be approved or given an opportunity to receive credit under certain conditions by another lender.

Who Has Access to a Credit Report?

A credit report is available for the person who's credit history is being reported, or listed. Also, a credit report is available for a creditor, lender, employer, landlord or whoever is making a decision on whether or not the applicant is eligible to receive credit. For an applicant or person to receive a copy of their own credit report, there is usually a fee, unless the applicant has applied for credit and been denied. In this case, the applicant has a number of days to request a copy of their credit report from any of the three major credit bureaus.

What are the Three Major Credit Bureaus?

The three major credit bureaus are Experian, Equifax, and TransUnion. A credit report can be requested from any of the three major credit bureaus. Please be advised that information on a credit report can differ amongst the three, so it is always wise to periodically request credit reports from all three major credit bureaus to see if credit information is correct.

What are Some Facts about Credit Reports That Should Be Known?

One fact to remember is that constantly applying for credit, whether a person is approved or not, can increase a credit score on the credit report. When a person applies for credit, the lender uses the applicant's credit report for review. This inquiry is listed on the credit report, and remains on the credit report for a couple of years. If there are many inquiries, this can be perceived as having to much debt to deal with all at once.

Also, incorrect information on one's credit report is not uncommon. It is wise to review a credit report for that purpose as well.