Your credit report plays a big role on how lenders and creditors view you as a client. Your application can get approved or rejected depending on the information contained in your report. In this article, let’s discuss some of the basic things that people should know about personal credit reports.
What details can you find in your credit report?
Your credit report is divided in four categories. It contains your personal information, payment history, credit report inquiries, and public records. Under the public records section is where you can find negative remarks such as tax liens, foreclosures, court judgments and bankruptcies. This is why it’s important to keep this section of your report clean and empty.
The first section contains your personal details such as your name, Social Security Number, past and present residences, past and present employment, etc. The second section is where all your payment history or relationship with lenders is recorded. Under the credit report inquiries is the list of companies that you have submitted applications to and have checked your credit report for application review.
Who can access your credit report?
Any prospective lender to whom you have submitted an application will access your credit. Potential employers and landlords can also inquire about a person’s credit report to check their background and determine their credibility.
Can you fix your credit report?
People with bad credit scores due to late payments or past due debts can improve their score by paying their debts and paying their current bills on time. If your credit report contains incorrect information or false charges, you can send a dispute letter to the credit bureau that issued your report and request that these errors be corrected. Nevertheless, if those charges are proven to be correct, then the only way you can improve your credit history is to pay back your creditors.
What information can you erase from a credit report?
Derogatory marks such as a record of bankruptcy can only remain in your report for 7 years so if seven years have passed, you’ll want to make sure that the bankruptcy has been removed under the public records section of your report.
Consumers must order a copy of their credit reports from each of three major credit reporting agencies- Experian, Equifax, and TransUnion – at least twice a year to make sure that it is free from any error.
What is the national consumer law?
The national consumer law states that creditors must never deny an individual credit if he/she is a qualified candidate. It is against the consumer law for any lender to refuse an applicant because of their race, color, religion, sex, national origin, or any other discriminating factors.