Credit reports are an extremely valuable tool for companies to use when trying to determine an individual’s ability to make payments on time and manage their money. Therefore it is imperative that you are fully aware of what is on your credit report. If companies can look at your credit history, should you not be able to as well? You’ll also want to know how to read your credit report when you think that it’s time for some credit repair.
There are several things companies look for when going through your credit report. Some of these items are:
• Past due items
• Bankruptcies
• Number of previous credit inquiries
• Repossession
• Foreclosure
• Collection amounts
• Court accounts
If you believe that some of these items may be showing up on your credit report you should get a copy and go through and analyze each item. There may be something on your credit report that you do not agree with or would like to dispute.
There are many companies that will ask for permission to see your credit report over your lifetime. Some of these types of companies are:
• Credit card companies
• Property companies (for example if you are looking to rent an apartment)
• Bank
• Loans of any sort (i.e. car, furniture, etc)
Your credit report is a vital piece of information. It shows your payment habits and what financial rulings have been made against you (collections). If you have not seen your credit report and have been denied by a creditor, you should get a copy of your credit report and analyze why you were denied. Credit reports often have mistakes on them and you are more than welcome to dispute any items you do not agree with.
Anyone who is new to a country and has no credit in that country can tell you the importance of credit reports. Without a credit report it may be very difficult for someone to get a credit card, or even find a place to live. If you are planning on moving to a country where you have no credit rating the best thing to do is get a copy of your credit report in your home country and take it with you. It is not ideal, but unfortunately there is not much else you can do.
We hope this article has clarified why credit reports are so important. Credit history is something that will follow you for years to come. If you have negative items on your credit report it is wise to start changing your payment habits immediately and start working towards good credit now.