A credit report is an important tool that helps you understand your financial options. The information on it can mean a higher or lower interest rate on a mortgage. It can help you get a credit card, and it can stop credit card companies from accepting your application. A simple list can help you examine what the information on your credit report means.
Credit Score
An important piece of information on your credit report is your credit score, which shows whether you are credit worthy. It demonstrates to lenders whether you are a risky person for them to loan money to, based on your credit history. The score can be between 340 and 850. Higher numbers mean that you have better credit. People with high credit scores can get lower interest loans and mortgage rates. A score above 700 is considered very good, while a score under 600 is significantly poor.
Account Histories
The account histories section of your credit report shows when you opened and closed accounts. It shows your account status that can be open, inactive, closed and paid. It also describes what types of loans you have taken out including private and government student loans. Next listed is the credit limit on your accounts and how close you are to reaching it. Issues that do not look favorable in this part include over-the-limit checking accounts and unpaid child support.
Public Records
The public records section has any accounts that you have that are in collections. Financial-related legal issues can stay in this part of your credit report for around seven to ten years. Examples of issues that may be here include judgments, tax liens, and bankruptcies. These issues have a significant negative impact on your credit score and can mean that you receive higher interest rates from lenders.
Personal Information
Your personal information is also included on your credit report. The report shows your current address and all of your past addresses too. It displays your social security number, birth date and drivers license information. Another thing it has is your employment history.
Inquiries
The credit report that you pull shows all inquiries that have been made into your credit report. For instance, an application to a credit card company for a new line of credit means that the company makes a hard inquiry, which can damage your credit score if many are made over a long period of time. Make several applications within one time bracket to avoid damaging your credit with too many inquiries across a long span of time.
0 comments:
Post a Comment