Credit reports come from three credit bureaus; and they differ in a lot of things, including your credit score. Why they would have differences, you might ask. The answer is pretty simple, all your past, present, and future creditors and lenders are not required to report all your accounts to all three agencies. Some may even only report to one.
This really does not have a big effect on your credit standing. However, common sense, when applying for a new loan, the creditor who has gotten hold of your three credit reports will favor reports in the mid-level. If your credit report and credit scores for example are in the best, good, and deficient ranks, the creditor will consider the “good” report and throw away the two others.
So to ensure that you have credit reports that are not too far in details from each other, you will need to check on them regularly. A credit profile that is excellent and active is a primary component in acquiring loan approvals at low bank rates. This is due to low risks on the part of the lender with you as a borrower since you have maintained good credit performance.
If your credit is first rate then this means that what lenders will see in your report is that you were able to maintain payments and due dates, and that if you do have current outstanding balance in any of your cards or loans, you are taking care of them.
Sometimes though, any or every credit report/s may have erroneous information from them. It would be good to attend to these mistakes quickly to avoid any financial inconveniences it may result in the future.
Your credit report or statement will contain a lot of information about you and your borrowing history. For you to familiarize yourself with the parts of your report is the first step in making sure that you can check your statement in a more scrutinizing way.
Each section of your credit report has various facts and figures in them.
The first part is the consumer information; this has your name, birth date, address, contact numbers, and your employer/ business information.
The second is a page for consumer statements; this is for any note from you regarding complaints on errors or messages explaining any late or missed payments in the past.
The third is a history of your various accounts including real estate, credit and collection accounts, installment, dates of your every credit and loan. Your payment history for the past 7 years can be found here.
The fourth contains your public records including files for bankruptcy, or tax liens.
Another part of your report is the inquiries section. This contains a list of firms that have asked for a copy of your report for purposes of a loan or financing in the last two years.
The last part of your report is the mailing addresses and contact numbers of creditors and lenders whom you have dealt with.
Tags: Credit Reports, What they contain