Credit reports are factual records of an individual financial activities. It reports all your accounts and outstanding loans, the balances on your credit cards and loans, together with your bill paying history. Lenders are allowed by financial report laws to check your report and review it in order to determine whether or not to grant you loans. In order to start to build a financial report, one has to establish a financial build up in the form of a card account, directly from the business you have accounts or outstanding loans with.
There are four main categories of information in financial reports. They include personal information, which is the information that identifies you, including name, social security number, current address and previous addresses, phone number, date of birth, current employer and previous employers.
It also includes financial history of your past bill paying with lenders such as: banks, mortgage companies, retail stores and finance companies. Inquiries is another category which means that ones credit report lists the lenders that have requested or received your report. Lastly there is Public records, which list any items that may affect your records, which include court judgments, including child support judgments, tax liens and bankruptcy proceeding.
Reports are normally available for public viewing by different types of organizations, including lenders who are considering granting you finances and government agencies who are reviewing your financial status for government benefits. This is why its so important for one to be aware of what their debt document says about them and their financial history. If you find errors on your report, you should verify those errors and then take the necessary steps to improve your debt summary and financial score.