What Is The Importance Of Credit Report?
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Credit reports exist for everyone who has ever borrowed money or opened a bank account. They record information about all your financial activity. When you are thinking about borrowing money, buying a car or a house, or consolidating your existing debt, you should remember the importance of credit report.
Each address you have lived at will be listed on your credit file. When you register or request a copy of your file you should give the company as much information as you can about previous addresses in order to speed up the process. It does not matter how long you lived at an address, or how long ago, it will be listed.
For all credit cards, loans or other financial products you are currently under contract with, there will be an open record on your file. Those that have been fully paid will still appear for six years. The more lenders you have had in the past and currently, the lower your overall score will be so do try to keep this as low as you can.
Any payments that are missed or late will show up on your file. You will usually find that there is a progressive list of monthly payments, stating whether each was made on time, late, or not at all. After a certain amount of missed monthly payments, depending on the creditor, you will go into what is called 'default'. These remain on your file for 6 years, whether they are cleared or not.
With cases of identity fraud growing every year, keeping a good handle on your credit file is essential. If you register to receive updates, you will be contacted every time there is activity on your account, so you will always know if it was you, or whether you are at risk of fraud. Once fraud has been listed as an activity, you may be unable to have it removed without a record of criminal proceedings.
Each time you apply for a new credit card or loan, a record is made on your report. The more times you apply for credit, the worse your credit score. Do your research and only apply for credit if you are confident you will receive it and it is absolutely necessary. Having your credit report available to you will help in choosing the most suitable lender.
To get a copy of your credit report, you should contact one of the credit reference agencies. If you are declined credit, they should offer you the contact details of the agency they used to credit check you. You can then either visit their website or contact then by post or telephone.
Article Source: Articlelogy.com
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