What is a credit report? A credit report is simply a list of all your creditors, the amounts you owe, and how much you are paying them. It can be very helpful when you apply for a loan, and it can also affect your score. A credit report has to be submitted along with your application, even if you don’t intend to purchase anything. It can only help your chances, but it doesn’t make the decision for you. Learn more about obtaining a free copy of your credit report and what to look for on it.
Why is a credit report important? Credit reports and scores are used by banks, landlords, employers, and other organizations in order to evaluate your financial responsibility. The higher your scores, the more confidence they have in you as a potential borrower. High credit scores mean low interest rates, which can save you hundreds each year. If you have high credit scores, you can get that great new car you’ve always wanted, but you can also apply for that great apartment you’ve been wanting, without a great deal of difficulty.
What are some kinds of negative information on my credit report? The kinds of negative information that show up on a credit report are mostly cases of fraud. For instance, someone may have opened up multiple accounts in your name, or someone may have used your credit cards fraudulently. Also, you might have opened up accounts in your name that you didn’t open. This can be seen as ID theft, which is a felony and can be very difficult to clear up.
What kinds of negative information do I have to dispute? You need to dispute any information on your credit report that is older than seven years. These include items such as old utility bills, old cell phone bills, old bills from shopping stores such as Macy’s or JC Penny’s that have more than seven years of age. Your best bet for contesting these older items is to write the credit card companies in writing. You should also dispute any account that does not belong to you, such as a rental car company that is claiming it belongs to someone else.
Can I pay off debts and negative items on my credit report easily? Yes, there are programs available for people with bad credit histories to improve their credit history. The problem is that these programs cost hundreds of dollars a month, and many people don’t have the cash to pay off these debts. There is a program available, called the Debt Consolidation Option, which can help you manage your debt and clear it from your credit report.
Can my creditors contact the credit reporting agencies about inaccuracies in my credit report? Some creditors and financial institutions are allowed to contact the credit reporting agencies in order to correct inaccuracies. Most of these types of requests are denied by the credit reporting agencies. They say that it is not necessary to contact them. However, it is important for you to keep track of what creditors are asking you to do in order to correct an inaccuracy.
Can I check my credit score online? Yes, you can access your credit score online whenever you like. You can also request a copy of your credit report through the mail if you prefer. The best way to view your credit score online is to access a website that provides you with multiple free credit reports every year. This type of website will provide you with three different credit reports from each of the three credit reporting bureaus – Equifax, Trans Union, and Experian. You can review them at your leisure and check for accounts that you want to remove.
Is my social security number listed on my credit report? Yes, it may be listed on your credit report. However, if it is not yours, then it is not a cause for concern. Your social security number is simply one of the factors that determine the amount of credit that you can apply for. The other factors involved in credit report applications include your current employment status, whether or not you are paying off any debts, and your debt to income ratio.
