Understanding My Credit Report - Get Help Understanding Your Credit Report
Posted by admin on May 20th, 2009
Am I the only one who doesn’t understand my credit score? Have you had this thought recently after checking your credit score? If you have, you’re not alone.
Understanding credit scores — who gave it to you, how you got yours, and what it means — can be confusing. Let’s look at these questions one-by-one to clear up any questions you may be having.
Who gave me my credit score?
There are three companies that provide the service of storing and maintaining credit records. These companies are not operated by the United States government but are for-profit corporations.
The credit reporting agencies (CRAs), known as “The Big Three” and are Experian, Equifax, and TransUnion. These companies do not share information with each other, so your credit score at one company may be much worse or much better at another one.
What information do these credit reporting agencies have about me?
They collect information about:
- Your payment history
- Your employment history
- Your age
- Marital history
- Your address history
- Your salary
- Bankruptcy information
- Judgement and tax lien information
How does my bank know my credit score?
Banks, finance companies, department stores, taxing authorities, landlords, and other people who offer credit subscribe to the CRAs. For a fee that is paid to the CRA, they can get reports on anyone who is requesting credit from them.
How did I get my credit score number?
The CRAs have a system where they evaluate the information that they have collected on you. The different factors have different levels of importance. For instance, whether or not you have filed bankruptcy or defaulted on a credit card has more importance than your salary or what job you have.
They use this system to assign a score to each factor and compile them together for your overall score.
What does my credit score mean?
Unfortunately, your report from each of “The Big Three” will be different. They don’t follow the same format and it can be confusing trying to understand them.
When you first look at your credit report, it will look like it is written in a foreign code. It is. But you can figure out this code by finding the “key” that comes with it. The key will tell you what each number and code means. It will take a little while, but you can figure it out with a little time and patience.
How often should I get a credit report?
You should get a yearly credit report. With the increase of identity theft, it is very impossible to keep an eye on your credit ratings. Only with a credit report can you see if someone has stolen your identity and is running up charges on a credit card that you never applied for.
It is also important to have a yearly credit report check to make sure you take care of any credit problems as they pop up. It is much easier than waiting until you need a loan and then having to tackle a bad credit rating.
Which CRA should I get a report from?
All three. Because these CRAs operate independently and don’t share information with each other, you score could be completely different at all three. A bad credit report may be showing up at one CRA but not at the others. It’s impossible that you have a good credit report at all three.
For more free and helpful answers about your a credit and credit cards, visit http://www.Credit-Cards-Now.info
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