Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus have been keeping tabs on you and how you use credit. When it's time for you to apply for a mortgage, credit card, or personal loan, your credit report is what lenders look at to decide to approve you or not.

Information about you is collected and stored in national repositories. Every time you apply for credit, whether it's a retail store charge account or an auto loan, the information you provide gets sent to the credit bureaus. When you are late paying a loan, it shows up on your report. If you have ever been in a dispute with a merchant and you refused to pay them, the merchant can report your non-payment to the credit bureaus for all lenders to see.

Your credit history is an important part of getting a loan. By getting a glimpse of how you handled debt obligations in the past, lenders can estimate the likelihood that you will pay back their loan in the future.

What's in your credit report?
Credit reports are chock full of goodies to keep your lender busy. If you have never seen your report, you may be surprised at how much information is actually gathered.

  • Personal Information.
    This section includes information that identifies you by name, address, and Social Security number. It gives your date of birth and employment history. Information in this section is not used for scoring purposes.

  • Credit Lines.
    This is the meat and potatoes of the credit report. It shows all of your credit accounts and lists the details of each. These details include creditor's name, type of account (credit card, auto loan, school loan...), account number, date the account was opened, current balance, past due amounts, credit limit, and payment history. It will list whether you usual pay on time or are normally late 30, 60, or 90 days. The report will also show any closed accounts that you have.

  • Credit Inquiries.
    An inquiry is an event where a company asks the bureau for a copy of your credit report. Any company that has accessed your credit report in the last two years will be listed.

  • Public Record and Collection Items.
    Any information about you that is public record from courts or debts reported by collection agencies will be listed here. Court information can include bankruptcies, foreclosures, liens, and other judgements.

    • Who is Big Brother?
    The three major credit bureaus are Equifax, Experian, and Transunion. The information that they have on you may not be identical. One may have accurate records, but another might have an error that can prevent you from getting a loan. Since you do not know which bureau a lender will use to base their approval decision, you should inspect your report from all three bureaus. Equifax offers a 3 in 1 report where you can view your credit report from all three bureaus in a single transaction.

    Before you apply for any loan it is wise to review your credit report. This way you can fix any errors before the loan process begins, saving you time and frustration if you get rejected due to a correctable problem caused by big brother and not you.

    Jon Galanty is a financial writer for eMoneyCentral.com. Visit http://www.emoneycentral.com to find out more about credit, loans, banking, and to get other great money tips.

    More Resources

    Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

    More Credit Information:

    Related Articles

    My Credit Card Application Was Rejected! Now What?!?
    No doubt, you've probably gotten literally hundreds of credit card applications in the mail and online, and each and every one of them has said that you've been "Pre-Approved".Of course it's natural that this would lead us to believe that the application process is simply a formality.
    Credit Cards for Home Business
    It is wise for you to have a company credit card like a VISA card. How can you find the least expensive bank card for your business? You may decide to use a VISA card from your local bank.
    Fixing A Credit Report
    Fixing a credit report starts with seeing what's on it. You may get access for free online.
    Good Credit is King, When Qualifying for Mortgage Programs
    If you want to purchase a new home or refinance your current mortgage, be sure to check out the wide array of loan programs available. If you have less than excellent or even poor credit, you can still qualify for a loan.
    Why Your Credit Score is Important
    Your credit score can either haunt you or reward you. It all depends on how you handle your credit and payment activities.
    What Happens When Your Credit Is Damaged? Do You Have Recourse?
    The good thing about bad credit is that you can fix it. If you start now, over time, your bad credit can turn into good credit, and you could qualify for the loans you want at the rates you want.
    Legislators Ponder New Credit Protection Laws
    Legislators in Washington, D.C.
    Useful Tips On Avoiding Credit and Charge Card Fraud
    Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways.
    Identity Theft - Guard Your Childrens Social Security Numbers
    Identity theft is a growing concern among Americans, and rates among the top five complaints received by states' Attorney General's offices. A stolen identity can lead to tens of thousands of dollars worth of debt in the victim's name and it can take years to completely undo the damage done to the victim's credit report.
    Lower Your Credit Card Interest Rate Now!
    With today's credit card companies, there are many opportunities to get your cards rate of 21% or more reduced. The higher the amount of interest your card charges will cost you more for a simple purchase and ultimately may take you years to pay off instead of months, should you make the minimum payment allowed.
    How a Credit Card Can Be Your Friend
    We have all heard countless stories of people over theirheads with credit card debt-maxing out every card they own,then only being able to afford the minimum monthly payment. High interest payments shackle people to their debt foryears, not to mention the significant income drain thefinance charges have on their families.
    Read and Understand Your Credit Card Statement
    Have you ever looked at your credit card statement and ended up just scratching your head in frustration? Well join the club! But don't take any comfort in the fact that you have plenty of company, because lack of knowledge can cost you?.right on your credit report, and once there can stay with you a while.
    Choosing the Right Credit Counseling Agency for You - Some Tips Part 2
    Credit counseling companies come in all shapes and sizes. Whether you are looking at working with a local credit counseling organization or a national credit counseling organization there are some very important factors to calculate before choosing the right credit counseling option for you.
    Tired Of Being Broke?...Learn How To Force Banks To Give You Money!
    Imagine..
    Debit Card vs. Credit Card, What Are The Differences ?
    Ah, the "good old days". If you are a baby boomer, like me, then you probably remember how important it was to rush to the bank on payday.
    Compare Credit Card Offers and Reward Yourself
    Here's a simple system on how to pay zero interest and get tons of free stuff. Almost everyone uses credit cards.
    How to Order the Right Credit Reports to Repair Your Own Credit
    In this week's article, I am going to offer some tips and insight regarding how to order the right credit reports needed to repair your credit.Believe it or not, a majority of the credit reports offered on the internet don't have the required information (File Number, Confirmation number, or Report number) needed to repair your own credit.
    Credit Cards Can Help You Get Out Of Debt
    Your credit rating / credit score is based upon how you have dealt with credit previously.If you have always paid the full amount owing and never missed a payment then your credit score will be high.
    Two Things You Need To Know About Prepaid Debit Cards
    According to the September 2004 issue of the Nilson Report, around $588 billion dollars worth of debit cards were bought in the United States in 2003. By 2008 that volume is expected to grow to $1.
    Understanding the Function of Credit
    What is Credit?Credit is the backbone and the engine behind the workings of the economy. Credit simply allows individuals and companies to borrow funds in good faith and pay it back over a specified time frame.