About Credit Reports

When you apply for a loan, creditors do have not information about your credit history on hand; instead, they retrieve it from one of the three major credit report bureaus. The three national credit bureaus, Equifax, Experian, and TransUnion, gather information about your credit history and provide it to lenders. A credit report is a very important reflection of your character regarding responsibility and ability to pay, so it is essential that you know where you stand. If you keep up-to-date with the information contained in your credit report, you will have a good idea of what loans you are capable of obtaining and what loans are not within your means.

A credit report contains a great amount of information about yourself and your past credit dealings.

We outline the five major categories of information below:

Personal Information:

The personal information contained in a credit report includes your name, date of birth, address, social security number, driving license number, your spouse's name and address, and employment history.

Public Record Information:

Public Information that is contained on your credit report includes information that everyone has access to. When you file for bankruptcy, it remains on your record for 10 years, and is available to the public. Other information, such as tax liens, remain on your public record for 7 years after payment.

Credit Information:

Credit information is also included in your credit report. This information includes things such as credit payment history, current account balances, late payments, and instances when you were performing in accordance to good credit standards.

Requests to View Credit History:

When you apply for a loan, creditors inquire about your credit history. This inquiry is recorded in your credit history, and can be damaging if abused. If creditors notice that you are applying for a large number of loans, as evidenced by repeated requests by lenders to view your credit history, they will get the idea that you are in a financial burden. For this reason, try to restrict your credit applications to instances when absolutely necessary.

Statements of Dispute:

When a credit dispute arises between you and a creditor, it remains on your credit report for 7 years, unless it is resolved within 30 days of initially being filed.

It is advised that you review your credit statement prior to applying for any large loan to ensure no discrepancies exist. The credit bureaus are known for reporting incorrect information on people's credit reports, so it is essential to review what information they have about you or you may be faced with unwarranted negative information. Even if you are not planning on applying for a large loan in the near future, it is recommended that you review your credit report at least once a year to protect yourself against incorrect information.

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