Understanding a Credit Bureau Report
June 28, 2008 – 12:55 pmSo you’ve just received this free credit report from one of the major agencies and you have absolutely no idea what you are looking at. If this sounds like you, then you are in good company. Lots of people don’t really know what they are looking at when they view a credit bureau report because to be quite honest, they are somewhat complicated to the untrained eye. Here are some tips to help you understand the important information you are reading.
Credit Bureau
Credit bureaus collect and collate personal information and financial data on individuals and businesses from a wide variety of sources including financial data furnishers with which the bureaus have a relationship. Data furnishers are businesses, utilities, debt collection agencies, public institutions, and the courts that a consumer has had a relationship with.
General Personal Information
Bureau credit reports will feature lots of information, but the first thing you should see is all of your personal information. There will be sections outlining your name, home information, other contact information, and then some other interesting things. Among those will be sections regarding your employment history and your criminal background. These things are in place for different outlets that purchase your credit report when trying to cross-reference you for a loan, new account, or some other type of agreement.
List of Active Credit Accounts
On your credit bureau report, you will see all of the open credit accounts in your name. This will include everything that you might have thought of and some other things that you might not have even remembered. If you have credit card accounts, any small loans, a mortgage, or other form of credit, then your account will be listed there. In addition, student loans, rental properties, and other things might show up. Along with the simple listing, there will be a section outlining how long you have had these accounts. This is one place where you will want to look very closely on your credit bureau report, because mistakes can sometimes show up.
History of Credit Account Standing
This part of the credit bureau report is extremely important. Every account, along with a detailed payment history will be listed within your credit bureau report. This section of the report contains your missed and late payments. In addition, they list all delinquencies associated with different accounts. This is the area of your credit bureau report that will be closely examined should you be reviewed for a new credit account. In this area, you can also find the balance of each account that people can review.
The Credit Score
Most people get credit reports just so they can know their credit score. When it comes to qualifying for loans, your credit score is the single most important number that you have. It can be the difference in getting the loan you need and being turned down. At the bottom of your credit report, you will see this number. It usually falls somewhere between 500 and 800, depending upon how responsible you have been with your credit in the past.
Tags: Credit & Debit
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