Let’s Talk About Your Credit Report

“There is a written record (at least in the virtual world) of your credit transactions that can be accessed by many types of agencies and even by you.”

Credit, these days, has become one of the most important things in our lives. So, a good credit score is a need as well as an obligation. A good understanding of the process is much desired, as many people don’t know anything about the preparation of their credit report. Let’s elucidate upon this.

There are three chief companies in the US that are involved in making credit reports on a massive scale. Here you may ask a very simple but basic question, from where do they get all the information regarding my credit activities? The answer is that these companies maintain a link with all those companies that deal in credit with their customers.

Let’s take an example. You have taken a home loan from a bank and you pay your installments regularly. Each time you pay your installment, an automatic report is sent to one of these companies (or even all of them) that deal in credit reports.

A log of each customer is maintained in this way and their performance is gauged on the basis of such reports. Naturally, you would have a high credit score.

It means that there is a written record (at least in the virtual world) of your credit transactions that can be accessed by many types of agencies and even by you. Again you may ask, why should I take all the botheration of obtaining my credit report when everything is well documented?

The answer is that the picture is not so rosy, as it seems to be. There are many instances when these credit reports contain a lot of errors and these can be increasingly responsible for your negative credit score. A painstaking check of your credit information, at least once a year, is highly recommended.

So, you can approach any of these credit-reporting agencies and ask for our detailed credit report. Sometimes, such companies ask for a small fee, although you are to be supplied the copy of the report totally free.

You will also be given your credit score along with. You can check all your particulars and see to it that no wrong information is there to mar your credit image.

Moreover, you should be regular in paying off your existing and future payments too. Otherwise your credit score will not be what you want it to be.

Author - DeeKay

Tags - Finance, Economy

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