What Is A Credit Report?

A credit report, also known as a credit file or credit profile, is a written report which is stored in computers that contain the following information about your personal credit worthiness and debt repayment history.

·         identification by name, date of birth, social security number, address, spouse’s name, telephone number, location of employment, mother’s maiden name, and etc. 

·         Credit inquiries – whenever a subscriber or credit provider runs a credit report on a consumer, a record of the file inquiry is created.  It will stay on the file in most states for 1 or 2 years.  This is useful to creditors for the reason that it discloses current credit activity. 

·         Information in public records and collection accounts are also collected or reported to these credit agencies.  Public records consist of courthouse records, bankruptcies, law suits, judgments, criminal records, etc. 

·         Credit history – which includes the name and ID number of every subscriber who creates a credit report and your credit or debt repayment history.  It also contains the date an account was opened, current balance, credit limits, monthly payment amount and payment frequency for the last twelve to twenty four hours.  All records are dated with each request of entry.  Additional information consists of, but is not limited to, criminal convictions, consumer disputes, individual liability, or joint liability of accounts, co-maker or guarantor of payment on a certain account, secured accounts and charge offs (when a creditor reports an unpaid balance as a loss). 

·         Consumer statements – a statement, which does not exceed one hundred words, regarding any type of account(s) a person might wish to more accurately and entirely explain, sometimes very helful to credit decisions. 

When is a credit file created? 

Usually when you make application for a loan or credit card or when a party who extended credit makes a report to their credit reporting service on your debt repayment. 

Normally when you process an application for a loan or credit card or when a party who extended credit creates a report to their credit reporting service on your debt repayment. 

Who can legally look at my credit report? 

Credit reporting agency subscribers which consist of banks, other lenders, life insurance companies, merchants extending credit, rental leasing, companies on employment applications, security clearance, etc.  cannot access a person’s credit record unless disclosure is made that a credit report will be requested and in several cases will have to obtain authorization from the consumer.  This authorization is standard procedure once you sign an application in any of the mentioned transactions.  For additional information, read the fine print on your application. 

How often should I look at my credit report? 

If you are an active credit user, with one or more credit cards with monthly or bimonthly charge activity, have installment loan(s), car lease, etc.  examine your credit file every 9 to 12 months, otherwise every fifteen months is satisfactory. 

What if I need help repairing my credit? 

Try to stay away from credit repair firms or services.  Do it yourself instead, it is simple and inexpensive.