If you have a credit card then one of the most intelligent actions any consumer can take is to obtain a copy of their credit report. A credit report is a detailed overview of how you have used credit in the past. The report will show the balances of your credit cards and how regularly you make repayments. Your personal report will also highlight if any action has been taken against you due to any unpaid bills you may have.
It's important for any consumer to know what is in their credit report. The report is used by any company who are considering lending money to an individual and used to assess how reliable and responsible a person is with credit cards, mortgages and loans.
There are usually four types of information on your personal report. These are:
Identifying information: This information includes your name, address, Social Security number, date of birth and employment information.
Credit information: This information includes any accounts you have with banks, retailers or any other lenders. Here you will also find dates on when you opened the accounts, along with your credit limit and loan history.
Public Record Information: This section includes information about bankruptcies, foreclosures, suits, wage attachments, liens and judgments.
Recent Inquiries: Each time you apply for a loan or other financial assistance you give the lender permission to view your credit report. The inquiries section contains information about all the companies who have asked to see a copy of your credit report in last two years.
You need to regularly check your report to determine if the information on your file is correct. If there are errors on your report then it will be more difficult to obtain a loan for lending institutions.