Everyone Should Know About Credit Report Basics

Credit Report Basics

The Credit Reporting Agencies work with lenders, creditors, insurers and employers to collect information from them and share it with companies with whom you desire to do business. Here’s an instance of how the system works:

A) When you apply for newly credits the creditor petitions a copy of your financial history from at the least one credit reporting agency. This causes a “hard inquiry” to be recorded on your credit report.

B) The creditor utilizes your credit reports and scores along with income, debt and other information to set what rates to offer up to you.

C) You begin to utilize the new credit and the creditor reports your payment history to one or more of the credit reporting agencies every 30 day period.

D) The credit reporting agencies update your credit report as they obtain new information (positive and negative) from those of your creditors.

E) Your credit profile varies based on your financial activeness.

Your Credit Report And How It Is Broken Down

Your credit report is separated into six main sections:
1. personal information (name, date of birth, last reported address,
2. any previous addresses on file,
3. the name and address of your current employer,
4. any previous employers that have been reported as well as any consumer statements you add to your file); summary; inquiries; creditor contacts; account history; public information.                
5. When you open a new account, miss a payment or move, these sections are updated with new information.
6. The old information will stay on your credit report for several years.

Not all creditors report to each of the three agencies and the agencies don’t share their data so your credit reports from TransUnion, Equifax and Experian could be considerably different from each other. That’s why it’s important to look into your three credit reports every a couple of months to determine that the information is correct and up-to-date.

Constantly Check For Inaccuracies That Demand To Be Corrected

Under the Fair Credit Reporting Act, consumers are protected from having faulty information on their credit reports. If you find an incorrect record on your credit report, many identity protection agencies supply you with the tools and information to assist you in disputing it. Verify the disputing section on those sites for less told information about disputing details on your credit report. You can likewise dispute the inaccuracy direct with the credit reporting agencies.

Make Sure To Be Diligent
I recommend that you verify your credit reports every 3-6 months in order to defend against inaccuracies and identity theft. Routine check-ups along with paying your bills on time, preserving your credit card balances below 50% of their limits and rectifying any inaccuracies may serve you to maintain a healthy credit profile.

If you would like more information on this topic and want Fast Credit Repair or if you are in need of Free Credit Repair, Beatlands Credit Repair has many credit repair topics and tips that can be very useful.