ReallyGreatRate.com Your Credit Report

ReallyGreatRate.Com
Your Credit Report

You know you’ve got one. But do you know what, exactly, your credit report is?

It is information issued by a credit bureau – or credit reporting agency - that shows an individual’s history of payments made on previous debts. Several agencies issue credit reports. The three largest are Trans Union Corp., Equifax and Experian.

When a customer fills out an application for credit from a bank, store or credit card company, that information is forwarded to a credit bureau. The credit bureau matches the name, address and other identifying information on the credit application with information retained by the company in its files.

In the United States, the collection, dissemination, and use of credit information is regulated under the Fair Credit Reporting Act (FCRA).

This information is used by lenders such as credit card companies to determine an individual's credit worthiness. It is supposed to represent an individual's willingness to repay a debt. This is indicated by how timely past payments have been made to other lenders.

In the old days, individual merchants collected information regarding their customers’ history of paying what they owed. Later these merchants began to share the information. Eventually this grew into the sophisticated system of Credit Reporting Agencies we recognize today.

Information included in a credit report includes the following:

Personal identifying information. This includes name, date of birth, address, telephone, social security number, and current and previous employers. Spouse’s names may be included as well.
Credit history. Credit history is a person’s bill-paying history with banks, retail stores, finance companies, mortgage companies, and others who have granted credit. Information regarding each account such as when the account opened and closed (if applicable) is included. Also included is how much credit is involved, loan amounts, and the amount of monthly payment. Missed or late payments appear as well.
Public records. This would be tax liens, court judgments and bankruptcies.
Inquiries. Requests from credit granters who have received a copy of the credit report show up. Also - the identity of those authorized to view it. Lists of companies that have received the report subject’s name and address in order to offer credit appear.
Dispute statements. These are claims that contest information on the report. Most credit bureaus allow consumers and creditors to make statements to report what happened if there is a dispute about specific items on the report.
Bank account balances, race, religion, health, and income do NOT appear (though medical debts can be included).

Credit scores are based on formulas utilizing the information in the credit report. An individual’s credit score is not, however, an official part of the report. The formula known as FICO – developed by Fair Isaac Corporation – assigns a credit score ranging from 300 to 850. It gives creditors an easy way to determine credit worthiness, and is used by most mortgage lenders. A higher number represents a better credit score.

ReallyGreatRate helps individuals decide upon the best means of dealing with difficult financial circumstances. Different methods of assistance may have varying effects on one’s score. This depends on the particular Debt Relief Program as well as the specific stage of the program an individual is at. The goal of such Debt Relief Programs, of course, is to improve a person’s financial situation in the most effective manner possible. So, an individual’s credit score may, ironically, become lower while he’s getting out of debt and for some time thereafter. But one of the long term effects of a person’s improved financial circumstances will be an improved credit score.

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