Your Questions On Credit History Reports Answered

If you have ever borrowed and repaid money then you will have a credit history report maintained about you by one, or many credit bureaus. This report contains certain information about each individual that employers, lenders, and insurance companies use to determine your credit worthiness. They will either grant or deny you credit based on this information.

What Information Is Contained In A Credit History Report?

Your name, address, employer, credit transactions, late payments, accounts, and outstanding debts are all contained in your credit report. If you have been declared bankrupt, or if you have been charged with any crimes, this information is also documented.

Often, the information in reports can be wrong, or incomplete. If so, the bureau that has the file has 30 days to rectify the data from when it is informed. It is in the best interests of the credit bureaus to maintain accurate data, so if you do find an error and report it, you will find that they are very willing to correct it.

From the data in your file you are rated with a credit score. This allows lending institutions to see at a glance what sort of borrower you are. Scores range from 300 points to 850 points. 850 Is the highest, and 300 the lowest. It is recommended that you try and keep your credit score in the 650-850 range to ensure that you will be able to secure credit. Obviously the higher your score is the easier it will be and the lower your interest rates will be.

Why Should I Obtain A Copy Of My Credit Report?

Since this information is compiled about you, it is your right to know what is contained in the file. Should information be incorrect, this will give you the chance to rectify it. If anyone uses your identity to obtain credit, this will show up on your file, and you can take steps to clear their activity and stop it from happening again.
If you know your credit score you can actively take steps to boost your rating, which can save you money in the long run. Everyone is entitled to a free credit report from the main three nationwide companies, Transition, Experian, and Equifax. You can order these all at once, or at different times throughout the year.