Companies often use your credit score as a way to judge your reliability and trustworthiness when providing you with any kind of services. The kind of service you get depends a lot on what is written in your credit report.
So, in one case, you may get a very low interest on your credit card, in another, you may have to deposit a security fee to get any kind of credit or services at all. If you want to avail the best services available to you out there, for your kind of situation, it is crucial for you to know what is written in your credit report, your creditworthiness.
So, what is written in your credit report?
Your Credit Report: -
Your credit report would contain two bits of information about you that allow banks/companies to assess your financial standing these are:
Your credit history: A report listing all your credit payments, loan history, disruptions in payments, account histories etc. The report lets the lender know the amount of credit you currently hold or have held in the past. Number of times you have had to deal with collection agencies. Any bankruptcies and foreclosures are included too. Plus, it mentions the times your credit report has been requested to be seen by a person.
Your credit score: This is the number calculated using your credit history. There are different ways of calculating your credit score depending on what purpose it is needed. It usually is within a range of 300-900 and has ratings from ‘excellent to bad’.
The main components involved in your credit score ratings are:
• Your Payment history
• Amounts owed
• Length of Credit history
• Types of Credit cards
• Account Inquiry
Depending on the type of credit score being calculated, different factors will have different weightage in determining your credit score, thus, changing the rating for each.
Your credit report provides can provide a brief summary of your finances that lets a company know how much a risk it would be to provide you with a loan or a service. I think in some case doubleyourline can also be useful. The credit score calculated for you acts as a representative of that and, often enough, it is just your score that establishes your creditworthiness. Therefore, you should know which part of your report is going to affect you credit rating, so, you can work to better it.
How to access your credit Report?
Typically, credit reports from three major bureaus; Experian, Transunion, and Equifax, are used by companies to calculate your credit score. Reports from all of these of bureaus can be accessed once for free every year. It is wise to review reports from each of these bureaus, as; inaccuracies/inconsistencies in each of these of reports can have an impact on your credit score.
In order to get your free reports, the website annualcreditreport.com can be used. Dispute form can be requested by the bureau in case of any errors in the report. The issue will be resolved within 30 to 45 days Credit scores are not made part of the free credit reports. You can add the credit score to your report by giving an add-on fee. There are other credit websites, like Wallet Hub, Credit Sesame and Credit Karma, which can also be used to obtain credit scores by providing a subscription fee.
You can use the credit report itself to estimate your credit score. Information given in the report can give you a pretty good idea about what factors may be affecting your credit score. Once you identify the issues, you can work to mitigate them, like resolving your payments or buying some of the information from the report to be removed. It is important to maintain a good credit history to keep your credit score at a good rating. Using your credit responsibly can help with that. So can keeping an eye on your credit reports, so, make it a habit!
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