Comprehension of a Credit Bureau Report
So you’ve just received this free credit report from one of the major agencies and you’ve completely no idea what you’re looking at. If this sounds like you, then you’re in good company. Lots of people don’t really know what they are looking at when they view a credit agency report because to be quite honest, they are somewhat complicated to the untrained eye. Here are some tips to help you comprehend the important information you are reading.
Credit Bureau
Credit bureau reports contain information collected from a wide variety of sources that have established a working association with the bureaus. Data furnishers are any entity that has a monetary relationship with the consumer, such as debt collection agencies, public institutions, businesses and utilities, and the court systems.
General Personal Information
Bureau credit reports will feature lots of information, but the first thing you should see is all of your personal information. There will be sections outlining your name, home information, other contact information, and then some other interesting things. Among those will be sections regarding your employment history and your criminal background. These things are in place for different outlets that purchase your credit report when trying to cross-reference you for a loan, new account, or some other type of agreement.
List of Active Credit Accounts
On your credit agency report, you will see all of the open credit accounts in your name. This will include everything that you might have thought of and some other things that you might not have even remembered. If you have credit card accounts, any small loans, a mortgage, or other form of credit, then your account will be listed there. In addition, student loans, rental properties, and other things might show up. Along with the simple listing, there will be a section outlining how long you have had these accounts. This is one place where you’ll want to look very closely on your credit bureau report, because mistakes can sometimes show up.
History of Credit Account Standing
This part of the credit agency report is extremely important. Every account, along with a detailed payment history will be listed within your credit bureau report. This section of the report contains your missed and late payments. In addition, they list all delinquencies associated with different accounts. This is the area of your credit agency report that will be closely analyzed should you be reviewed for a new credit account. In this area, you can also find the balance of each account that people can review.
The Credit Score
The purpose of attaining your credit report is to understand your credit score. Your credit score is the most important factor when trying to qualify for a loan. In fact, it will likely be the deciding factor in approving your loan or rejecting it. This number will appear at the end of your credit report. The average number is usually between 500 and 800 and is dependent on how well you’ve handled your credit agreements previously.