|
 |
|
Credit Report |
 |
A credit report is a document that summarizes your history of credit usage. Your credit report also contains personal information including your social security number, previous addresses, other names you’ve used (such as maiden name), information about liens, defaults, bankruptcies and other public information, credit card information including payment history, and the names of individuals/organizations who recently pulled copies of your credit report.
A credit report definitely tells a lot about you. In fact, your credit score is derived from the information it contains. That’s a number that can positively or negatively impact your life. Mistakes on your credit report will lower your credit score which is why it’s so important to regularly review the information your credit report contains. It’s up to you to ensure its accuracy.
Credit reporting agencies, more commonly known as credit bureaus, are responsible for preparing credit reports. Lenders voluntarily forward credit information to the various credit bureaus. Using massive computer databases, the submitted information is sorted and appended to millions of different credit reports. Receipt and organization of credit information occurs every single day and because much of the work is computerized, the updated information appears on a credit report almost in real time.
The Fair Credit Reporting Act (FCRA) was created in part to protect consumers from unwarranted access to so much personal information. The Act outlines who can access a credit report and the circumstances under which that third party is entitled to such access. Interestingly, credit lenders can obtain copies of your credit report in order to continually monitor how you are handling your financial obligations.
In the event a lender identifies an ongoing problem, or feels a problem is likely to develop in the future, the lender can take whatever action it deems appropriate to protect its interests. Raising interest rates and lowering credit limits on the credit cards it issues to you are examples of actions lenders can take without first getting your approval.
Financial experts advise that you should review the information on your credit report for accuracy at least annually. Since each credit bureau creates its own credit report, to be effective you need to obtain a copy from each of the major credit bureaus in your area. In the United States, there are three: Equifax, Experian and Trans Union. Should you identify a discrepancy, it’s possible you can work with the credit bureau to correct it. You must, however, follow the credit bureau’s credit report dispute resolution procedure exactly.
|
|
Credit Card Definitions > A - E > Credit Report
|
|
|
 |
|
