#credit report companies
Get an Annual Credit Report from
BBB Approved Companies
The lender checks your file in order to examine your financial transaction track record, including borrowing and repayment history. It is very important, then, that you ensure the information there is accurate and up to date.
What Is a Credit Report?
Basically, it’s a file that documents the history of your credit usage and includes the following:
* Credit information, such as detailed present and past account history, the way you make payments (on-time or late), the amount of debt you have, the types of accounts you have, the length of time you have used credit and more.
The combination of all these factors are used to define how much of a risk you are to a potential lender and it helps to formulate a sound and informed decision about your creditworthiness.
Why Is a Credit Report So Important?
What these files say about you is what lenders use to make lending decisions. This has far-reaching implications. For example, if you miss payments on your current credit cards, potential future lenders may not be willing to approve your application because you may miss making payments.
In some cases, it may limit your ability to qualify for a home loan, car loan, or even some types of employment.
Most lenders use the score to determine if they should lend to you.
Those are Experian, TransUnion, and Equifax. These agencies gather the financial information and hold it in a file.
Checking your credit report for accuracy is critical. You should do so at least one time per year. If you find an error, contact the bureau directly and file a dispute.
Unless the creditor can prove the information is correct, the bureau will remove the negative information. Ensure only your identity is present on the report, too. As you look over your credit report, note any accounts that do not belong to you and dispute these as well.