What Are Credit Reports?

What Are Credit Reports?

Credit reporting is the most under regulated business activity in the world. There is absolutely no penalty for incorrect reporting. Credit reporting bureaus keep this information in computer databases and provide it to lenders when you apply for a new credit card or loan. Credit reporting bureaus do not make lending decisions. Credit reports are maintained by the credit reporting agencies, frequently called credit bureaus. Currently, there are three major credit reporting agencies in the United States and Canada.

Credit reports are like those roach motels — bugs check in but they never check out. Credit report is the first thing that creditors look at. Credit report will not hurt their credit and people who have good credit have absolutely no problem with people checking it out because they know it’s good. Just as an example, how would they feel if you let someone move in next door because what they wrote on application was great, but the person had been convicted of rape in the past?

Credit reporting agencies (Experian(TM), Equifax(TM), and TransUnion(TM)) are required by law to give you a copy of your credit report upon request at no charge once every 12 months. Credit reports and credit scores influence our lives in many ways. Your history of credit management affects the cost of loans, your ability to rent or buy a home, the insurance rates you are offered, and even your future employment opportunities. Credit report repair can be technical.

Credit report freezes are designed to prevent thieves from opening new accounts in the consumer’s name. Businesses generally do not extend credit to an individual without first checking his or her credit report.

Credit reports are incredibly useful, particularly if you’re hoping to take out a large loan or mortgage. Credit reports have long been advised by many who work in finance, and it is easy to see why. Credit reports can also be requested with a credit score rating at any time for a fee from the 2 major credit reporting agencies, Equifax and TranUnion. Recently, the third agency, Experian, has stopped providing consumers with access to their reports. Credit reporting agencies must complete these investigations within 30 days or remove them from your credit reports. Because many times these credit reporting agencies are backlogged with disputes, they often do not complete the investigations in time.

Credit reports contain hundreds of pieces of data, updated every month, from banks, credit card companies, auto lenders, mortgage companies, department stores, etc. The things that make it challenging to decipher are the same things that make it a valuable hiring tool. Credit reports are comprised of your credit history. Your credit history includes the type of loans you have received, your payment history, the amount of money that you owe, the amount of time you have had credit, and the number of times that you have applied for loans. Credit report repair involves techniques for removing negative credit records from your credit report. These are the exact same methods credit score repair clinics and attorneys may charge up to $3,500 to perform.

Credit reports have long been advised by many who work in finance, and it is easy to see why. Giving you the complete picture of where you stand in money lender’s black books you’ll know what kind of offers you can expect when seeking out loans and mortgages.

Credit reporting agencies must complete these investigations within 30 days or remove them from your credit reports. Because many times these credit reporting agencies are backlogged with disputes, they often do not complete the investigations in time. Credit reports contain hundreds of pieces of data, updated every month, from banks, credit card companies, auto lenders, mortgage companies, department stores, etc. The things that make it challenging to decipher are the same things that make it a valuable hiring tool.

Consumer advocates, including the Center for Responsible Lending, say they’re simply kickbacks that lenders pay brokers for steering customers into a higher interest rate. The key is how much you’re paying: anything more than a quarter of a percent (e.g., 25 basis points) is likely going to be a rate that’s higher than you could have gotten shopping around on your own, unless you have damaged credit.

Consumers can access online consumer credit reports, which are instant on the payment of the requisite fees. Consumers are required to input personal information such as their social security number, address, phone number, etc.

Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease. Consumers have the right to look at their credit report without it affecting their credit or credit score. When you request your credit report it’s called a “consumer pull” and has no affect on your credit.

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