It reports all your credit accounts and outstanding loans, the balances on your credit cards and loans, and your bill paying history.
Lenders are permitted by credit report laws to check your report and review it in order to determine whether or not to grant you credit.
In order to start to build a report, all you have to do is establish credit in the form of a credit card account, car loan, mortgage, or student loan.
Most of the information comes directly from the business you have accounts or outstanding loans with.
When you pay your bills or fail to pay your bills, lenders usually report your credit information - good or bad - to credit reporting agencies.
There are four main categories of information in your credit report: 1.
Personal information: Your report contains information that identifies you, including the following:
- Your name
- Your social security number
- Your current address and previous addresses
- Your phone number
- Your date of birth
- Your current employer and previous employers
Your credit history: Your credit report includes your history of bill paying with lenders such as:
- Banks
- Mortgage companies
- Retail stores
- Finance companies
Inquiries: Your report lists the lenders and credit grantors that have requested or received your credit report.
The general rule is the fewer inquiries on your credit report, the better.
4.
Public records: Your report lists any items that may affect your credit, including:
- Court judgments, including child support judgments
- Tax liens
- Bankruptcies
In addition, potential employers may do a credit check for employment to determine whether you're financially responsible.
And landlords often do a credit check for renters.
This is why it's so important for you to be aware of what your credit check says about you and your financial history.
If you find errors on your credit report, you should verify those errors and then take the necessary steps to improving your credit score and report.