August 24, 2016

Credit Report Rating – What You Need to Know Simply & Efficiently

Your credit report rating is one of the most important numbers you’ll ever need in life.  The elements that make up a consumer credit score are weighted differently by the various credit reporting agencies that service U.S accounts.  There are many things that can damage your credit rating including inaccurate credit reporting and identity theft.  Identifying the potential problems with your credit profile early is important to increase your credit scores to the maximum level.

What is a credit report?

A credit report is basically a compilation of a consumer’s credit history including detailed information about each of an individual’s personal credit accounts.  These accounts include bank credit card accounts, mortgages, and loans.   Every lender in the nation uses a credit report to determine whether a consumer is credit worthy enough to borrow money.  The credit score associated with a credit report helps them gauge credit risk and assign interest rates for a loan or credit card.

What Credit Bureau Reports Contain

A credit bureau report contains a great deal including personal identifying information, credit account information and public records, which may include liens, bankruptcies and judgments, http://www.consumerfinance.gov/askcfpb/309/what-is-a-credit-report.html.  This information is updated generally every 30 days.

How does a credit report and score work?

A credit score is calculated based on information contained in a consumer credit report.  The report reflects all of the activity between creditors and account holders.  A credit score based on reported information is made up of payment history, amounts owed, length of credit history, new credit and types of credit used.

Free Credit Report And Score From The Credit Reporting Agencies

Obtaining a free credit report from each of the three credit bureaus is simple.  By ordering from the website, annualcreditreport.com consumers will receive a credit report from each of the three credit agencies, Equifax, TransUnion, and Experian.  These are free of charge once every 12 months.  Consumers can obtain each of the three free credit reports at different times throughout the year however.

Can an employer use a free credit score report to check my credit?

While employers cannot use credit reports free of charge as a screening tool when looking for prospective employees they may subscribe to credit bureaus directly for this purpose.  Many companies reason that employees who handle their personal finances well will work wisely with the company’s money also. 

Employees with good credit may be under less financial stress in their personal lives and may do a better job professionally as well.  Some states however have outlawed the use of credit reports by employers to screen job applicants.  In all instances where employers use credit reports, prospective employees must give written permission before the employer can check their credit history.

Fixing Damaged Credit With A Free Credit Report With Score

While consumers can work to repair credit that has been damaged by obtaining a credit report, professional credit repair companies can work quickly to more efficiently raise credit scores for individuals.

A credit score is vital to the financial well being of a consumer.  Based on this number, banks, mortgage companies and credit unions charge interest to borrow money.  By raising their scores over time, consumers qualify for better lending terms and can save thousands of dollars.  Many of the reasons ratings can be lower involve misinformation either reported to credit bureaus or recorded by lenders themselves.  Protect your reputation now and rebuild your scores today.