Each month, creditors, debt collection agencies, and even the courts will submit information to the more than 1,000 local and regional credit bureaus located all over the country. They are also affiliated with any of the country”s three national credit bureaus– Equifax, Experian, and TransUnion. All the information is placed by your creditors in a computer monitoring system which will, in turn, be updated by the credit bureau. Both positive and negative records from the companies you have accounts with are recorded in your credit report. As previously mentioned, your ability to obtain future credit and even get a job will depend on how your credit profile looks in your credit report.
So just what kind of information is seen in this crucial document? Basically, a credit report contains your personal information, your credit information, public records and collection accounts, and inquiries made to your credit history.
Personal information is not used to gauge your ability to take out loans or obtain credit. This part simply includes your name (including known aliases), social security number, driver”s license number and place of issue, date of birth, past and present addresses, and past and present employers. If you are married, the same information will also be reflected about your spouse.
Credit information reveals your credit history and current obligations you may have. Any accounts you have with such institutions as banks, credit card companies, utility companies, and retailers will be reflected in this portion. This is where prospective lenders will judge your credit habits as the information will reveal when the accounts were opened, the type of loan taken (mortgage, a student loan, revolving credit, or installment loan), the balances in these accounts and credit limits, and the payment history for each (whether you pay these on time or are one, two, three months late in your obligations).
This program is ideal for anyone interested in real and lasting credit improvement.
The public records information is also another crucial section in your credit report that will affect your credit score. Data here is gathered from the court system and debt collectors. This part will reflect any liens and judgments issued against you, bankruptcies filed, foreclosures, wage attachments, and any accounts that are still to be collected from you.
Finally, the names of those who have received copies of your credit report in the past year or two will also be shown in the document. These can include yourself, your prospective employers, future landlords, and creditors. This part will also have an effect on your overall credit profile as too many requests for your credit report from companies that you are applying to for new credit in a short period of time tend to be perceived in a negative light. This signals to lenders that you are in need of large credit or are planning to take on a huge amount of debt which classifies you as a potentially high-risk debtor.
More on Credit Reports Demystified