Credit Card Articles > The Important of a Credit Report
by: BestCreditCardRatings Staff
Credit Report is a special type of report that contains all information about your credit history. The credit report contains information like your personal details as well as where you work and the history of your spending and bill paying habits. A credit report helps different organizations such as the credit card companies and financial institutions like banks to decide whether credit should be extended to the concerned person or not.
The personal identity information includes your name, address, your married status as well as your contact numbers. It also contains your social security number and your date of birth as well as the number of dependents. The employment data includes the name of the organization in which you are working with the duration of your employment and the salary package in your firm. Information about your credit history includes credit payment experiences and loan repaying experiences. Other information may include cases of civil suits and bankruptcy, if any.
Your credit report is prepared by credit reporting agencies or credit reports and they selling these reports is their main business for generating revenues. These credit bureaus evaluate all your applications for loans, credit, insurance, employment, etc. The credit report should contain accurate information about all the factors mentioned above.
So how can you obtain a credit report? In case a credit card company is not issuing you a credit card or you are not getting employment in a firm or you are not getting a loan from the bank then you should get a credit report from a credit bureau to see that everything is fine from that end. You will get a free credit report within 60 days of making the application. However you can also simply get a copy of your credit report by making a request to the credit report agency. Here you will be charged for the services of the credit report agency. The charges for a credit report are very reasonable. The three most reputable credit report agencies are Experian, Trans Union and Equifax.
myFico scores are the credit scores most lenders use to determine your credit risk. You have three FICO® scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well.
Not all account may be stated in your credit report. This is because though credit grantors such as credit card companies and banks submit the information to the credit report agency, small lenders do not report the same. It is very necessary for the credit report agency to identify the sources of information. In case you have any dispute about the accuracy of the credit report then you can apply for rectification of errors in the report. The credit agency then acts upon your application and reinvestigate your status. The agency should then submit the credit report within a reasonable period of time with amendments (if any).
The credit rating agencies may also use a scoring system which is based on a particular algorithm. The credit score varies from 350-850 points with 350 points being a bad score and 850 being a good score. The better the score, the better is the credit rating of the holder. Hence credit scoring is a standard way in which lenders can access the risk when they give credit.
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