5 Items youíll find on Your Credit Report.

By: Thomas Hunter

Youíve applied for a loan at a bank or other lending institution. Youíve done your research, filled out all of the required forms and you think youíve meet all of their requirements. All you need to the formal approval. Then you find that your application has been denied. The reason is commonly a poor or irregular credit report.

This may leave you wondering: ďWhat is a credit report and why did it have such an impact on my loan application?Ē A credit report is a document that details your personal financial data and history. These reports essentially show the reader how you manage your finances and the information recorded in it can be the major factor in a bankís decision to approve your loan application or deny it.

What type of information does your credit report include? Hereís a quick overview of some of the information included on it.

Personal Information:

Information in this category includes things like your full name, social security number, current and previous addresses and current and past places of employment. This information is gathered from the information you have given to past creditors so youíll want to ensure that there are no discrepancies.

Public Records:

This section of a credit report details things like bankruptcies and foreclosures as well as any accounts you might have in collection.

Your Credit History:

Anyone reading your report will be able to see the number and types of accounts you have. They will also be able to see the payment history for each account and that includes all late payments.

Credit Inquiries:

This section of your credit reports lists anytime you made an inquiry for new credit. If too many of these are made in a short period of time, lenders taken a very negative view of you and your financial management abilities.

Your Credit Score:

After your credit profile is looked at, a number is assigned that falls between the range of 340 and 850. The higher the number is the better. The higher your score, the less of a risk the lender perceives you as.

Your credit report can have a huge impact on your ability to secure a loan and on the terms that you get when your application is accepted. A poor credit report will mean higher interest rates and poorer terms and could also mean a rejection of your loan application if the lending institution is not impressed with your credit history. Thatís why it is so important to secure a copy of your credit report before applying for a loan. You want to have time to correct any debt management issues before a lender sees it, not after.

There are several agencies that can help pull your credit report for you. There are different types of reports you can receive including one with or without your current credit score and one that offers a side-by-side comparison of your standing with all three of the major credit reporting agencies.

You may find yourself surprised with the results, particularly if you decide to use more than one company. The problem may not be with your credit, but with discrepancies in your report. The information may be out of date or contain incorrect information, and though an old address may not seem like a big deal to you, your bank may have questions and those questions could prolong the loaning process. Be sure to take a close look at these credit reports and correct any mistakes as soon as possible to ensure that was your banks see is an up-to-date and completely accurate view of your financial history. Youíll have to make sure that update your information with each major credit reporting agency because they work independently of each other and do not share any sort of information between them.

Any comments made on your report are there for some time. If the comments are positive then thatís a good thing, but a negative comment from a past lender can influence your buying and borrowing power for seven to ten years if that comment is accurate.

Itís important to remember than any sort of financial decision you make, influences your financial future. Take care when managing your debt Ė your pastís actions can prevent your future dreams from coming true.

Wake Up Richer Every Morning... Instant Internet Business Makes Money Automatically... Thomas Hunter is an Internet marketer, author and publisher and has helped hundreds of people become successful Niche Marketers. Explore the highly profitable world of Niche Marketing at http://SixFigureNiches.com our popular website.
Article Source: http://netsalesinc.com
If you have a website or ezine you may freely post this article on your site as long as you include the full resource box above. All links must be active / clickable with no syntax changes.

© 2006 Article Directory - All Rights Reserved.