Behind the Credit Card Scene: Your Credit Report
What are the credit reports? Why should I always check it when applying for a credit card or a loan? What can I find in my credit reports? These are the common questions when it comes to credit reports not saying that most people confuse credit reports with credit scores.
Credit report is a record of loans, credit cards, payments and outstanding debts, whereas credit score is a three digit number between 300 and 850.
The information in your credit reports is supplied by companies that have given you credit or loaned you money. The companies, or lenders, give regular reports (usually once a month) about your credit accounts to the nationwide consumer credit reporting companies (credit bureaus). And the bureaus collect this information and keep it in their databases and provide it to lenders when you apply for a new credit card or loan. Credit reporting bureaus do not make lending decisions.
Lenders use credit reports to decide if you are creditworthy and responsible enough to handle additional credit. Your credit report should contain:
- Payment information – your current and past payments are recorded, including the information whether your payments have been on time or late.
- Balances – all the balances on your credit cards, including outstanding balances, and the amounts of your loans.
- Personal information – all your personal data including information from public record, like bankruptcy or overdue taxes.
- Overdue child support payments.
- History of inquiries –the names of everyone who recently asked for a copy of your credit report.
Under the Federal law, every a year you can get a free copy of your credit report from the three biggest credit bureaus. These credit bureaus are: Experian, Equifax, and TransUnion. These three companies have one central website (annualcreditreport.com) where you can get the free annual credit reports from each of them. You can request your reports online, by phone at 1-877-322-8228 or by mail.
You should check your credit reports at least once a year to make sure there are no inaccurate records and that no one is opening up accounts in your name.
To order your reports you will need to supply the credit bureaus with your personal information so they can identify you. This usually includes your Social Security number, your full name, as well as current address and previous address.
Many people who apply for a credit are denied because of lack of credit history. Without credit history, the lenders find it hard to determine if you are good credit risk and often deny applications. So if you’ve never had credit, or haven’t used credit in a long time, you can begin to build a credit history right now.
Latest Credit Card Issuers News
The news that Capital One Financial has struck a deal to buy Discover Financial Services shook up the credit card market, paving the way for Capital One to become the largest nation’s credit card issuer in the country. Capital One, a stalwart in the financial sector and the ninth-largest bank in the U.S., plans to […]
Citi has officially launched its new travel platform with the assistance of Booking.com, which Citi cardholders can use for earning and redeeming Citi ThankYou points. Citi Travel with Booking.com will replace the existing City Thank You Travel Center and will offer access to over 1.4 million hotel and resort options, as well as competitive pricing […]
An alliance between American Express and i2c is now focused on offering payment products in the American Express network through fintech companies. Amex announced its collaboration with payment and banking technology company i2c in April this year. The two partnered to create a platform that allows fintechs and financial institutions to launch cards more quickly […]
Continuing to live in the present reality and the ongoing COVID-19 pandemic, global giants of the financial and credit sector introduce new bonuses for the convenience of their customers. Mastercard, in turn, has announced new partnerships with DoorDash and HelloFresh offering new food and grocery delivery perks to Mastercard World and World Elite cardholders. According […]
Walgreens has recently announced its plans to enter the consumer financial services market. To be precise, the second-largest pharmacy store chain in the United States is going to start issuing credit cards and prepaid debit cards under its brand. The main reason for this expansion of the scope of activity is the losses incurred by […]
