Your Credit Report

Most consumers are aware that they need to maintain a good credit rating. Failure to have a high enough credit rating can result in a rejection of your application for any type of loan or credit. It is important to stay abreast of your rating and correct any errors in the record.

What’s in your credit report

Basic identifying information such as address, date of birth, job and Social Security number are listed in your report. In addition, your report shows all the credit accounts that you have taken out, how long you have had them, the limit on the accounts, and any balances as well as payment history. Your report also lists every time an inquiry for credit was made. Inquiries can be from applications for a mortgage or credit card, and they can also be made by companies that want to offer you credit. There is also a section that lists public records. This can include foreclosures, bankruptcies, liens, judgments and any wage garnishments.

Calculating your score

Your credit score is used by lenders to make decisions on how likely you are to pay back any loans on time. Things such as paying late on loans or credit cards, types and amount of outstanding debt and credit, whether you own a home, and your ratio of credit to debt, can all be used to make a determination about your score. For questions about finances or bankruptcy contact David R. Black’s Bankruptcy Legal Group for effective solutions.

Posted In: Bankruptcy