Credit monitoring & identity theft protection | CFPB & FTC

Category: Credit Report

Pros & Cons of a Credit Report

Looking for ways to improve your overall financial status, a credit report is the key for you to build credibility in the eyes of lenders. Any financial institution such as a bank, a credit card company, a payday loan agency, or a micro-credit firm, often called a local credit bureau for credit inquiries – making sure the lender is securing a good borrower (hence reducing risk of delinquency).


Your credit report is a comprehensive list of good or bad objects that your lenders looked out for when making a financial decision in loaning an optimal amount of money. It’s crucial as a borrower to “beautify” your personal credit report card and attract potential lenders to furnish you with a lower rate of financing & better lending conditions, maximizing your opportunities to enhance your total payment history.


Pros of a credit report

How much does a credit report cost? Sometimes, an online free credit report is available if your personal finance is tight. But, what does a credit report do? Find out more about the pros of a credit report.


1. Easily accessible & attainable.

One good thing is accessibility to an individual credit report. You’re basically covered for up to 3 times for an annual credit report for free – Experian, Equifax and TransUnion – accredited credit bureaus. Don’t forget that there’re others available too!


If you are in the process of a credit repair, it is essential to purchase your credit report. In doing so, you’re effectively managing your personal financial health & familiarizing with relevant claims that your creditors had filed against you, thereby lowering your credit score.


Accessibility is a major fact for most consumers due to prolonged working hours as well as under full-time employment. The credit report shall be mailed to your residential address at your convenience. Therefore, take full advantage of up to three credit reports yearly today!


2. Comprehensive list of bad or good objects listed.

The good news about your credit report is on the information listed. A detailed checklist of good or bad objects listed may provide you a clear insight in financial planning, deletion of bad information, recovery of local reputation, and giving you a chance to negotiate with creditors.


A fully furnished credit review helps in generating strategies & ideas in rebuilding your bad credit score. It’s imperative to assume a financial responsibility in clearing up those bad information and objects, cleaning up unpaid debts, and other outstanding claims. No creditor is in the right mind to “harm” you by filing many credit disputes on your current account.


A comprehensive list of bad or good information listed is your best guess to improve your credit report. Invest some time in digesting the financial terms and objects that are nailing your poor credit score. It is possible to perform a detailed credit fix found in the next topic.


3. List out negative objects or information in a credit report.

An interesting fact on consumer behaviours is that many people purchase a credit report without reading the information listed or do anything about their financial problems. Staring at your credit report does no good to your circumstances.


List out the bad information such as a verified claim from a creditor, an error from a credit bureau agency, or a mistake at your end for missed payment. The more you penned down, the higher your probability of fixing a bad credit score. Do spent much time figuring out the right way to handle a credit repair – do more good than harm in the long term.


Listing of negative objects is actually not difficult. It’s the amount of energy and efforts being used in clearing out good information, cleaning up bad objects, and managing loss of data that drains much resources. You may choose to outsource to an external party like a credit repair company.


4. Make a good decision of hiring a cr company.

A credit report may be difficult at the beginning due to rudimentary knowledge in credit fix, busy work schedule at your company, lack of financial knowledge to file a dispute, or unsure of the entire process in fixing a bad credit report card.


There are many ways to manage a badly damaged cr. One way is to engage a credit repair company. A local credit repair company near you is able to help you in terms of matching local terms, similar cultural mandate, proper connections to relevant banking departments, and other tiers of expertise – all at a small cost included in a credit repair package.


Make a good decision by engaging an aggressive credit repair company. If an agency is not to your liking, you may opt for various professional credit repair companies. Just continue searching for the right ones and your efforts shall pay off in the short haul. It takes a good credit repair company to fix the negative objects listed in a credit report.


5. Enhance awareness to your personal financial outlook.

Instead of avoiding the reality of debt repayments, monthly mortgages, auto loans and many more expenses, why not learn more about how a credit report works? An awareness to your financial outlook deserves a medal as you could potentially be in danger when an economic crisis happens or a sudden loss of employment, rendering you the inability to continue paying for your personal expenses.


A credit report is just one (comprehensive) list of credit info, detailing every single information for your kind perusal. You may choose to undergo a financial course pertaining to fixing a credit report score or simply buy a credit report for your financial planner to handle on behalf. Both ways are equally useful while many consumer debt reports are being applied to the above mentioned two factors.


Enhance your awareness to your personal financial outlook today. It’s you who are accountable when your creditors seek redress from unpaid debt obligations while your lenders looking for financial indicators to loan you sizable sum of monies. Do yourself a favor by investing some resources such as purchasing your credit report and fix it now.


Good to know about your credit report in year 2018.

A credit report is an essential tool for those who wanted to repair bad credit. Here are some pro tips in helping you to better understand your credit report:

  • Buy a credit report – ensure you are familiar with the process & flow in obtaining a free credit report – up to 3 times a year at Experian, Equifax and TransUnion.
  • Check reported bad credit info – one small error does make a difference in your credit score. Additionally, your lenders may not want to risk their cash to loan.
  • Stop bad spending habits – a credit report detailed most relevant claims & bad objects. Do yourself a favor by stopping low-quality purchases and installment plans.
  • Find ways to improve your credit report – apply for some financial courses or government grants to enhance your knowledge in a credit report.
  • Applied knowledge in your credit report – knowledge learnt is not exercised. You’ve to take the initiatives in contacting your creditors and credit bureaus to fight for justice!


Cons of a credit report

Since there is no “perfect” financial system in history, a credit report has its bad points too and it is crucial for you to respect. For a good or bad credit report, your total financial standing will be in trouble. Different credit scoring agencies used your personal info differently, bringing much confusion to your side.


1. You are only entitled up to 3 free credit bureau reports a year.

Do not be surprised! The truth is that three credit reports yearly may not suffice if you’re trying to fix some negative items listed. Each credit bureau operates almost independently hence its working style varies, giving you a disadvantage in repairing bad information – some creditors used different credit rating agencies in reviewing your credit info.


Evidently, you’re not exactly in the right place as you might take reference to a credit bureau (say Experian) while your local creditors only undertake Equifax credit report into consideration. This leaves you with a “gap” between the reported bad credit info vs. your fixed info. How do you fix a credit report error and win?


Winning over some credit report errors is nothing to shout. The credit card company or any lenders have the final decision in issuing out bonds or loans to you. It’s impossible to manage all 3 credit bureau reports and expect a positive reinstatement in your overall credit ratings.


2. Slow credit report progression & communications.

Have you been frustrated on the delayed responses? It could happen among relevant parties such as a response from a creditor, an initiated agreement with a credit bureau, or slow progression from a credit repair firm. These problems occurred simultaneously and might create a drag in your credit score report.


To avoid potential financial mishaps, failure to obtain bank loan approvals, you’ve to adopt a proactive stand in ensuring frequent communications with two major players; a credit bureau officer and your creditor’s appointed agent. Both parties had to come to an agreement in rendering quality control over your good credit report.


Notably, it’s important to learn more about your creditor’s inquiries and predict the kind of questions being asked upon the relevant verified claims. A positive claim or verified review from anyone can caused your credit report to fall, leading to negative situations in the long run.


3. A credit report fix does not ensure 100% success.

Who can provide a guarantee to your credit report? It is practically not possible to undertake a credit report guarantee. From the looks of a tattered credit score, you might be facing difficulties in rebuilding your past credit history and one missed payment can reset your entire hard-earned efforts.


Some credit repair companies do guarantee fixes for a credit report cleanup. The problem of such firms is that they’re continuously improving their styles to help clear up bad information, not a one-hit thing in fixing a bad credit report. You have to be clear on the services being applied for as mentioned in the credit repair contract.


There is a possibility of having a guaranteed credit repair aggressively marketed. Its not a false claim but sometimes taking up to 12 months or more for an effect to materialize. Why does a credit repair company take so long? It is because the guaranteed conditions are based on prevailing market rates & an aggressive credit repair fix has to slowly removed useless objects painfully.


4. Credit report fixes can be costly in the short term.

Unless you’ve the financial capability or money to splash, doing a detailed credit report fix is going to be challenging and costly. An inexpensive credit fix is not going to help. The issue of not having sufficient cash flow is already the reason behind a credit repair, thereby defeating the purpose of investing in a credit reporting agency.


Personal credit report cleanup is recommended. However, it does consume time & efforts in diligently listing out bad objects while implementing credit control over certain expenses. Do you really think the time is worth your efforts? The matter of subjectivity steps in to let you re-think of costly credit repairs – cr companies do the same process as well.


No amount of money is worth your time if you’re looking to improve your credit score permanently. It’s a follow-through procedure in listing out your negative objects, finding the right ways to file a dispute on credit report errors, win the errors or mistakes, and finally keeping your credit report clean.


5. A credit repair might backfire your reported problems.

Discrepancies, good or bad credit info, possessed risks when the problem comes to filing for credit disputes to win. Many consumers assumed that a legal costly credit report repair can boost your financial standing. False! A credit repair helps you to understand your current financial conditions and examine proper remedies to relief debt burdens.


If you’re serious in managing a credit repair, technically focusing on your credit report, chances are you’ve to educate yourself in financial clauses and perform actual reviews on your individual scorecard. Certain credit scoring models like Vantage score 3.0 & FICO sense score are necessary to learn.


However, your paid efforts will be wasted if the disputed credit report errors are verified claims. Some false positives might go through but certainly not the obvious reasons like defaulting on personal loans, missed mortgage repayments, or creditor’s lawsuits against your bad debts. Do check those bad objects listed carefully.


Good to know about your credit report in year 2018

Not convinced on how credit reporting companies operate? Here are some of the good things you should be aware in understanding the cons of a credit report:

  • No one can guarantee a credit report error win: Nobody may provide a guaranteed credit report fix, period.
  • Aggressive credit repair works: Many consumers forgo the slow & steady progression due to the fact of aggressive credit repair working for them.
  • Do not cheat in fixing your credit report: Attempted cheats such as personal identities & theft cases will land you in jail, behind bars for a long period of time.
  • Figure out a strategy: Do not jumped into the bandwagon without an affordable credit repair company, at least the minimum package.
  • Credit report errors to win: Never indulge in costly activities. The judge is looking to resolve your credit report disputes and errors in an amicable fashion.

Failure to observe the pros & cons of credit report increases the chances of losing to an agency or creditor. Your motive in filing a dispute to credit bureaus is to stop getting behind those financial problems, so manage your credit report well and of permanence relationship.


Quote of the Day: “Maintain a strong credit report – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of credit report: Decorate your credit report nicely!

» Pros & cons of credit repair: Final destination for a credit fix!

» What you need to know about a credit report: No money, no honey!

» Do’s & don’ts of credit score: Never destroy your financial reputation!

» What you need to know about credit repair: All you ever needed!


This article was originally published on February 19, 2014. It has since been updated. 

What You Need to Know About A Credit Report

It’s difficult to navigate among financial institutions considering the fact of credit reporting agencies dishing out your credit report to a broad spectrum of reviewing agencies to determine whether to fix your scorecard or do business with you. Consumers with a tattered credit history often have to wait for a long period of time in getting local bank’s approval. Identity theft seems to be the best option for a credit cleanup, but deemed as the least viable option. As you advance your knowledge in your personal credit report and evaluate the best option for credit report fix, check out immediate actions in repairing a bad credit report.


A bad fico score discourages most credit rating agencies considering that most creditors often assessed borrower’s profile before issuing out financial products such as a new mortgage, an auto, or personal loans. Those with a negative credit history don’t have an opportunity after reviewers performed a detailed personal credit check, credit monitoring, a credit search, or a credit file review – collaborating with a credit bureau. For a disapproved reason, consumers can opt for an annual credit report to check for discrepancy & filed a dispute with your claimants.


1. You can get an annual credit bureau report.

Under normal circumstances, up to 3 times for a 12-month period, you are eligible to obtain a credit bureau report free. A common understanding is that you can request for an annual free credit report. Upon securing a free report card, you may proceed to do a thorough credit check on the listed bad information and objects before determining whether to lodge a normal dispute against the claimed rights.


For those who were directly rejected for loan approvals, credit check companies, or any other reasons, you’ve first rights to request for a personal credit check even if your quota for 3 credit bureau reports are used up. Once you initiated a dispute, by the nature of statutory laws, both the credit bureau and creditor have to respond within a time frame while providing a satisfactory answer to you – failure to do so may launch an internal investigation [Experian, 2009].


A good example is on identity theft. If you realized that the bad information being put up is clearly out of your country, usually in North America or Asia Pacific region, chances are your personal identities had been leaked out. This is known as an identity theft fraud. The thief used your credit report to apply for various debt services; applying a new mortgage scheme, financing of luxury goods, or initiating an auto loan installment, before defaulting on borrowings.


Scorer: In the process of requesting a free credit report, be it for a fico score check or scoresense, you’ve to be fast in getting a soft credit score else your potential lenders might turn you away for any credit application request. Do observe the above example of identity fraud thefts!


2. A credit report determines your credit score, not your personal income.

Many consumers don’t understand the flow of a credit rating agency. It’s important to take note that a credit report is based on your payment history, amount of paid & unpaid debts, any outstanding loan, statements claimed by creditors, personal bad information, or any updated records – influencing the calculations of your actual credit score. There’s not a big interlinked to your monthly wage pay.


A monthly income does determine your credit score, indirectly. If you’re earning an abnormally high income, either working as a professional in specialized industries or a high-flyer in a mnc, your relative spending power is much more than the median gross income of an ordinary citizen. In this case, you may take up more debt, servicing a costly mortgage, incurring high individual expenses, or taking up structured loan products. These variables do cause an indirect impact toward your credit score, higher income tier professionals have a better financial standing in the eyes of credit monitoring agencies.


Evidently, a credit report check is the first step of work for your creditors and you in determining the appropriate bad information to be removed and necessary precautions in new debt applications. It’s legit to contact a credit bureau – Experian, Equifax, or TransUnion – to request for query. A credit reviewer normally calls the agency for new inquiries of your credit report for an in-depth check before liaising internally – generic questions.


Reporter: If you’re working in a high-paying job, fixed income salary or variable commissioned tiers, you stand an opportunity in fixing a bad credit report. Sims & Maverns [2015] reported on an increase of removal of tax liens & negative information listed, at times almost immediately and resulting in a temporary increase in credit score. Nonetheless, you’re strongly discouraged to adopt new loans even if circumstances allowed you to do so.


3. Your financial standing determines your credit report.

What is a good credit score? In accordance to Experian Credit-Works [2009] portal, a debtor is assessed on a need-be basis. A good credit score is 609 and above. There’s no limit to either sides of scoring model such as a VantageScore 3.0 or FICO, so do not be confused on why credit rating agencies collaborate with each other.


You needed to purchase a credit report from a reputable reporting company. Reason being, an online credit score check is inaccurate due to lack of credit info. If you’re to visit a credit bureau, or the top credit repair company, the service officer will produce a (long) list of questionnaires while requesting time to get involved in a personal credit check. So long as you approved on the credit search, the agent has to undergo the hassle of finding irrelevant bad information or retrieval of dispute success to initiate a case.


A bad credit report scorecard jeopardizes your financial standing and vice versa. When you access your personal information, follow some of highly effective credit repair examples that banks & agencies do:

  • Fico score – Myfico or scoresense is a good scoring model for you to get an indicative value of your credit score.
  • Credit bureau score – one of the best option in understanding your current financial position.
  • Free credit report – Experian, Equifax & TransUnion did a good job in simplifying your task to check credit score online free.
  • Credit score companies – external agencies offering a comprehensive suite of services ranging from checking for scores to doing a cleanup service.

Procedure: Firstly, get your credit score. Nothing is more important than securing certainty in an uncertain environment. You’ve to be wary of two major components; a credit score calculator and check credit score online free. Free services might not be as comprehensive as paid ones.


If you’ve found a discrepancy between the actual credit score and online free assessments. In doing a credit search, you must be transparent in full disclosure of personal information and obtain a reasonably well credit score. Inevitably, your paid efforts shall come to fruition.


4. How to improve your credit score?

There are many ways to improve your credit score. If your current credit card report isn’t fantastic, about 550 – 600, do not attempt to file positively verified information. A legal repercussion might get in the way. It’s imperative for you to build up your credit report in a legally right manner.


Emphasis on credit history. Since your creditor, a bank, a payday loan service, a store operator, likely experienced bad debtors before, he/she is unwilling to assume more risks in accepting an individual with bad reputation. Here are some common procedures adopted by your creditors:

  1. Excellent rating: highest probability in obtaining bank loans
  2. Good rating: Equally high chance of success
  3. Average rating: Depending on types of applied loans
  4. Bad rating: Disapproved or rejected loan applications
  5. Zero rating: Junk debtor not allowed

Alternatively, facing difficulties in obtaining your desired credit score, you may consult your nearest credit union for financial assistance while waiting for an update on credit protection. Do not attempt to cheat by producing false information as agencies worked together to combat identities fraud and other fraudulent credit card schemes – proved your creditworthiness in the right way.


Comparison: On a daily basis, banks do have strict financial regulations in approving your loans. They’ll do a comparison between eligible debtors and determine the issuance of debt, the better the credit score, the higher chance of getting approved.


5. Doing nothing is a strategy.

Are you getting rejected multiple times from different creditors? It’s time to do nothing! For your special case, probably due to countless of bad credit reviews, you don’t stand an opportunity to apply for anything. Since you’re unsuccessful in credit card application, personal loan process, what is needed for your credit report? Simply put, do nothing. It’s because some creditors might be updating your profile, either getting rid of obsolete content or inserting new claims against you.


Nothing lasts forever! As time goes by, probably a couple of months, your credit report shall advance in removing of bad information. The issues cannot retain a permanent placement in anyone’s report card. When you paid up outstanding loans, clearing up credit card debts, and timely payment for utility & gas bills, chances of extracting negative objects are higher and faster.


Of course, do remember to negotiate for better financial status. It might be simply to seek assistance from credit repair companies or to rebuild your credit report nicely. The assigned agent can make use of past experiences and global connections to aid in identifying probable mistakes in your credit report while getting the right communication channels to improve your credit score – all for a fee. Meanwhile, keep still and do nothing to alert your creditors.


6. Do not buy a credit report online.

Identity theft is common in today’s contemporary settings. The vast internet is an enabler for frauds in the finance industry, shady credit repair companies, online credit card applications, free credit score check, local credit report agencies, or other debt-related spectrums. Chances of you being ensnared into lucrative debt-financing measures such as quick credit report fixes & credit cleanup free are high – you’re the target market for credit frauds.


If you’re feeling uncomfortable in revealing online for your credit report, do not attempt to post personal information online. The risk of identities getting stolen, misused online, or creating a new credit file using your information provided, could be dangerous. You’re liable for any offenses being reported by local governments, credit bureaus, and police officers – being jailed for no apparent reason or heavy fines which is detrimental to financial health.


However, stealing of personal identities is impossible without your intervention. Credit bureau invested millions of dollars in creating an impregnable fortress to prevent leak of consumer data, breach of privacy policy, loss of data, sudden server closure, or unforeseen circumstance. It’s usually the fault of consumers revealing too much identity information to online media sources or simply fall into a credit fraud scam. Otherwise, your security information is in the right hands, getting adequate credit protection, credit guard and credit insurance – all for your benefits.


7. Are credit rating agencies precise?

Apart from the usual online credit score assessments, credit rating agencies placed great emphasis on building up an integrated system to calculate your credit score. The main rationale for such investments is to market out their free credit reports before introducing paid reporting hierarchy, lexington law credit repair, experian, or others.


Like it or not, you do need a credit score to buy a home, an auto insurance score, American express credit secure, or a wells fargo fico score – taking advantage of transportation & accommodation necessities. You’ll be implementing various financial measures to fulfil the bank’s requirements and ensure in compliance with the local’s government credit report. Do you think lenders are unaware of the reporting structure?


Since these agencies are in an advantageous position, you have to observe your creditor’s borrowing structures and penning down the following observation from a karma credit report:

  1. Reputation of credit reporting agencies – 1st step is to understand that your 690 credit score is not at risk.
  2. Citing of county relationship – next up, forget about those who assured you on having relationships for a quick fix on a 580 credit score.
  3. Promiscuous nonsense – whoever who promises you that an 800 credit score can do anything under the moon.
  4. Attempted sale of information – shady credit repair companies often preached a 550 credit score has hope for guaranteed credit card approvals.
  5. Marketing campaigns – never signup with a credit card company offering you highest interest rates for a 700 credit score but at the price of a 521 credit score.

Avoid lofty sales statements! So long as you’ve an acceptable credit score, affirmed by the relevant credit bureaus, there is no reason why any promises should be made to you. For those with lower credit scores in the range of 450-609, you may proceed but subjected to bank’s approval. There’s no such thing as a promise in the credit industry, only doing at best efforts basis.


8. Fixing a credit report is an ongoing process.

Most consumers placed their faith in undergoing a tedious one-off campaign, pay to delete, removal of tax liens, termination of bad objects, or other negative information. This is not true! A good debtor, cleaning up one’s report card, has to understand the ongoing basis for repairing your credit report.


Do not assume that your creditor’s will help you in retrieval of debt data and restore your personal credit fast. A good credit history is the only way financial institutions treat you better, hence the need to continuously improve your credit report score card. Flushing out negative information does aid in rebuilding your individual portfolio faster.


One simple idea you can implement is to find zap credit repair or xpress credit repair services. In doing so, your focus is to increase monthly income via promotion while the assigned veteran credit repair does the “dirty” job in restoring your credit. It’s imperative to furnish detailed credit info over to the agencies as they might require some time to retrieve bad objects in the report card – sending over swiftly can trim time taken in requesting for negative data retrieval.


9. Never sell your credit report.

As an individual, you’ve the rights to request for an annual credit report for up to three times a year free. Upon collecting your credit report, usually by mail or self-collection service, you can perform an in-depth credit check and fix, listing out bad information, wipe your credit clean, temporary credit repair, apply for shield 360, or any speedy cr services. Third-party merchant services like Optima or Paypal credit repair are available at places to help fix credit.


However, selling of your credit report, personal information such as individual identity, special records sent by the agency, or credit card detail must be kept strictly confidential. If you’re caught divulging this information to the public or selling out personal identities, chances of getting penalized is high & subjected to legal implications. Again, there are many legitimate credit repair companies.


Once you’re arrested for sale of credit report info, it’s time credit repair not work out well and a veteran agency can’t be of assistance anymore. Therefore, if you want to fix your credit to buy a house, buy a car, or simply improve your financial status, do not reproduce copyrighted information or sell out your rights to anyone.


Good to know tips & tricks for credit report in 2018

No one has a “perfect” credit report. Repairing of bad objects & improving of credit score are often done in an ongoing momentum. You’re in-charge of leading your lenders in the right path of entrusting their credit services to you for a fee and a peace of mind. Employing of strategic debt repayments is what the companies considered you to be a good borrower, equally competent with those of 800 credit scorer. Here are some fruitful tips in being a good credit report holder:

·         Show up & fix your report scorecard

·         Negotiate on deletion of bad information first

·         Don’t argue on verified positive data

·         Buy a credit insurance guard

·         Combat identity theft

·         Invest in a good credit repair company

·         Communicate with a credit bureau & a claimant

·         Attempt for personal credit fix

·         Frequently update your credit history

·         Pay up on time to clear missed payments

·         Rebuild your report swiftly

In summary, it’s practically impossible to satisfy every creditor’s demand on having a “beautiful” credit report. The only thing doable is a proper credit control at your end, proving to them your proactive attitude in financial prudence as well as aligning your objectives with their focal points. The final destination is to be free of debts after monitoring your credit report.


Quote of the Day: “Report the reported information – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of credit report: List everything out at once!

» Do’s & don’ts of credit repair: Final destination for a credit fix!

» Do’s & don’ts of credit cards: Avoid credit card debts like cash advances here!

» Do’s & don’ts of credit score: Never destroy your financial credence!

» Do’s & don’ts of personal finance: Forget about shopping today!

» What you need to know about credit repair: What do you know?


This article was originally published on February 14, 2014. It has since been updated.  

What is a Credit Report?

A credit report, en-suite list of historical records of past borrowings, acts as a report card in demonstrating your attitude in managing finances. Within the enclosed report, you may identify paid and unpaid debts, secured and unsecured loans, lending histories and modes of payments.


Your personal credit report reveals urgent information that you’ve not honored, thereby turning over to debt collections agency. Mishkins [2013] provided statistics on bad debt recovery services being invited once debtor’s filed for bankruptcy or faced repossessions. Financial institutions like banks often conduct background searches on credit reports in decision-making process; approving credit, verification of identities, and relevant purposes as defined by Federal law.


How is a credit profile built?

Domicile in the U.S, your local report is available at three major bureaus namely; Experian, Equifax and TransUnion [Credit-Repair Guide, 2013]. Each company has its own version of maintaining a report card while the main framework does not differ much. It is on the methods of calculation that shapes the outcome in determining whether the profile is suited for granting credit, nothing more.


If you’re interested in learning more about your debt profile, paying a short visit to the nearest agency can enable you to familiarize with necessary obligations. Fortunately, an individual is entitled up to 3 reports each year and subjected to additional charges upon requesting beyond three cards.


How your credit report is useful & why?

The basis of your credit scores derived mainly from your credit report, an imperative measurement and indicator to bulge bracket institutions. Information being listed on credit reports is one of the best gauges being used to determine fico credit scores [Experian, 2009].


If your credit report depicts a timely paying and long history of borrowings, it certainly fetches high quality credit scores in the eyes of lenders, thereby (likely) enabling you to secure favorable terms upon applying for credit cards and loans. One catch is to be able to prove your credit trustworthiness.


On the flip side, Cheong Shum et al. [2009] warned on poor financial habits leading up to lower credit scores and evidently shown on your credit reports. Statistics from borrowing records do not lie. Lenders often disapproved bad histories and borrowers find it harder to seek redress. TransUnion credit bureau depicted consumers facing tough approval in attaining credit cards and loans too.



What’s the content of credit report?

Easily dividing into four quadrants, your Experian credit report is as follows:

  • Personal Identity: (1) Individual’s name (2) Address or Location (3) Employers
  • Credit Accounts: (4) Credit cards (5) Fixed-income mortgages (6) Auto or Car loans (7) Others
  • Creditors’ Inquiries: (8) Names of companies (9) Dates of credit retrievals – up to 25 months
  • Open Information: (10) Public records about bankruptcies (11) Tax liens (12) Bill passing etc.


Learn more on the fundamentals of your credit report, the duration of which it’s updated, and various ways to fix problems within the shortest possible period. Remember, the longer drag on removing claims, the harder you faced in filing domestic appeals.


How credit bureaus obtain your information & determinant factors?

Where does individuals’ information within those Credit Reports originate? In a broad overview, financial institutions and debt-financing firms are responsible for furnishing your credit report information to the relevant credit reporting agencies; Experian, Equifax and TransUnion – major bureaus requiring such information to match requests.


Other relevant governmental agencies such as debt collectors, local jurisdictions (county), state and local governments appeared to contribute information in a transparent manner. It is imperative to garner tons of data from various properties so as to mitigate biased responses and judgments, argued Mishkins [2013].


If you’re still curious on the transparency and openness in information-sharing, please note that most companies dealing with your raw data might not openly reveal your personal information to the above 3 local reporting companies. Instead, they do report on the account status to either one of them only, on a monthly basis. Experian [2012] rolled out statistics on maintaining credit reports of more than 220 million active participants in the U.S – one of the largest credit bureau companies in town.


Fact: A research study conducted by Experian made a shocking discovery; approximately 79% of all reports possessed certain kind of mistakes albeit not meaningful to most companies in decision-making.


What to do in obtaining a credit report?

In 101 Ways of Financial Habits [2012], getting your credit report within the first quarter is highly recommended. Trend analysis depicted that big asset purchases often occurred in the first three months of the year. Big-ticket items are mainly; new auto loan, college degree or new house. Be meticulous in reviewing it, ensuring that most (best if all) of current items listed are accurate. Wealth Caliber [2013] forewarned on potential identity thefts across the States hence you’ve to be careful and not hesitating to initiate a dispute once there is any discrepancy.


One good practice is to perform semi-annual review on your credit report. Since you’re entitled up to three free report cards [Eagle News, 2015], do make it a good habit to collect from them. Make full use of whatever resources on hand to deal with inaccurate issues or handle false claims in a profession manner.


Where to obtain your credit report for free?

As mentioned earlier, not needing a credit card, you may obtain your free credit report from either of 3 nationwide credit report agencies. Annual-Credit-Report [2012] encouraged consumers to obtain theirs from Experian [2009], Equifax and TransUnion – all cards being refreshed on an annual basis.


According to Fair Credit Reporting Act [Experian, 2010], an individual may request for a free credit report if he/she has been rejected by the following circumstances: Employment, Insurance and Debt. You’ve personal rights to contact the disapproved service and request for the name and contact information, in which they obtained information regarding your credit file. Please undergo a thorough review on the your free credit report within 60 days or approximately two months.


When & how to review your credit report?

Here is a breakdown on ways to reviewing your credit report:

  1. Objects recognition: upon collecting your credit report, be sure to be able to tally the objects listed with your receipts or purchase agreements. If not, seek redress from the company that claims to be a creditor and making sure that you are not subjected to a growing threat – identity theft.
  2. Transparent details: one of the common errors is information of customer accounts being wrongly entered. Yes, it is still a practice today in missing out latest account updates. Contact the respective agency and start filing a legal dispute – 60 days to answer your query.
  3. Credit utilization ratio: if you’re having difficulties in calculating your debt utility ratio, check out here. A good balance falls under 30% of total credit limits, as a cardholder, and high utility ratio could signify poor financial habits.
  4. Debt portfolio mix: possessing several liability classes can open-doors to high-quality credit fico scores. Examples are credit cards, mortgage loans, auto installments and other insurance premium bills.


How does information listed in your credit report affects FICO scores?

In summary, your personal information (stated above) affects your individual credit scores, beginning from the date you signed for installments/mortgages, history of payments till the overall debt utilization factor – being the key determinant variables.


If you’re clueless on how to improve credit scores, let your personal credit report be of a helpful guide as to what you can rectify in a transparent fashion. It is also one of the most accessible option with no cost incurred over a 12-month period, thrice annually.


Find out more about the basis of credit scores here and significance of different score ratings, with a host of relevant topics on credit scores at our unique Frequently Answered Question (FAQ) portal!


Quote of the Day: “You do not need to be wealthy to be disciplined, but you needed to be disciplined in order to be wealthy – LIG Corp [2018]”


Relevant Topics

» What is Credit Repair: Find out how to use your free credit report here!


This article was originally published on January 12, 2014. It has since been updated.


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