How Can Credit Reports Hinder You?
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Most people fail to realize the significance of credit reports. A few are possibly unaware that credit reports exist. Other People may have heard of of credit reports but believe that their credit report is not meant for them to see. Other folk just may not be worried about them. This article is intended to explain just how serious credit reports are and why you should take an interestin seeing yours.
Why Should You Read Your Credit Report?
There are several organizations in the United States that hold information about you and how you manage your financial affairs i.e. your credit history. This data will of course include lots of details about all of the financial transactions that you enter into in your life. The information that these "credit bureaus" have about you is significant enough for creditors and lenders to use in order to make decisions about how creditworthy you are: these decisions can affect your life in some fairly dramatic ways. Examples of the kind of financial events that are tracked by credit bureaus are things such as:
- Bill settlement and debt repayment - Loan applications - Opening a new bank account - Credit card purchases - Property purchases
Other details retained in your credit record are information about your address, whether or not you have a criminal record and whther you have been refused loans and credit previously.
All of these detail are assimilated by lenders and creditors to decide whether extending loans or credit to you will be risky for them. In this sense, risky signifies whether or not you could repay your debt to them. It is
obvious then that the financial details contained inside your credit report has a direct relationship with your financial future: negative items in your credit report can mean that you find it impossible to borrow money.
Examples of Negative Items in a Credit Report
The below list highlights examples of items that are considered as negative on a credit report:
- Payment defaults - Being bankrupt - Criminal prosecution - Declined loan applications - Repossession of a property you used to own
For many people paying a bill slightly later than they should would not cause them a great deal of worry. The fact is though that even paying just a few bills late can add negative items to your credit report and possibly affect your ability to borrow money or acquire credit. Consequently, you should be aware of what credit reports are and have a clear view of how yours looks.
Mistaken Negative Items
One of the major reasons why you should be familiar with your credit report is that for some people negative items can appear on it incorrectly. If you are not aware that you have incorrect negative points on your credit report, your credit report will not be as good as it could be... and this may well cost you dearly.
Obtaining a Copy of Your Credit Report
By law, you are permitted to one free copy of your credit report each. All you have to do is contact a credit agency and verify some personal details such as your home address, name and birth date etc. Alternatively you can use online credit report tools such as those offered by Experian, Transunion and Equifax: although these services may result in a charge.
No matter how you do it, get a hold of a copy of your credit report today so that you don't find out something nasty at an inappropriate time.
About the Author
Javier Melendez contributes to the UK No Credit Check Loan website. His recent work outlines your credit history
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