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Written by Gary Cole
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What Information Is Gathered?A variety of information is gathered from each of your lenders and reported on your credit report each month. This information all has to do with your use of the credit. When you pull a credit report, you will be able to see all of the information that is available to potential creditors and current creditors you have.
Because this information is out there, it does help companies to determine if they should lend to you. Yet, they must have your information and permission to access the report.
A credit report company will gather the following from your creditors each month:
- The credit line they are providing you with (your credit limit)
- The amount of credit you are using (your credit balance)
- The amount of change over the last month (usually given in numbers and a percentage)
- The payment history of the account, on time, 30 days late, 60 days late, 90 days late (for the last two years reported)
- The amount of your monthly payment
- The opening date of the account (often displayed as the length of time the credit line has been open)
- The credit card companies provide this information to each of the credit reporting companies automatically. In most cases, an actual person never sees the information unless they need to review it for some reason. Errors are often infrequent, but they can happen.
Is Your Report Accurate? Having a credit history that is accurate is one of the most important things you can do for your credit and financial future. The information on your credit report must be accurate if lenders are going to get a good picture of the type of borrower you are. In addition, the credit reporting companies gather this information from each of your lenders then use it to calculate a specific credit score for you. The highest the score is, the more responsible of a borrower you are. This score is highly important since it is what most credit lenders use to determine your individual credit worthiness. Mistakes on your report can cause this number to be lower than it should be.You should obtain a copy of your credit report at least one time each year from each of the three largest credit reporting companies. The good news is that the government requires that each of the companies gives you one free copy per year. That means that every four months, you can pull a copy of the credit report from one of the three companies, check it for errors and notice any things you can do to boost your credit. This helps you to cut out any potential scams or identity thefts too, before they can ruin your credit situation.
To obtain a credit report and to learn what the credit report company is displaying about you, visit the company's website and request one. The process will take you through a verification to insure you are who you say you are. It will then display the report for you right online. You can print it. In addition, the companies give you specific instructions on how to file a claim if you find information that is not accurate. The process is simple and straightforward. The reward is a highly accurate report which qualifies you for more credit, better interest rates and a better financial outlook. You report is your identity to the financial world; make sure it is accurate.
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