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A credit report is simply a document that
outlines your credit history. The report contains
details of your residence address history,
employment history, payment history, whether you've
declared bankruptcy, and other personal information
relative to your finances.
Credit reports are made available by what's known as
"consumer reporting agencies", and the most common
type is a credit bureau. By collecting important
personal financial data, they make your credit
history available to lenders, credit card companies,
insurance companies, department stores, employers
(with your consent), mortgage companies, and
landlords.
Credit bureaus make a profit by collecting and
selling your personal information. They comb public
records to see if you have any previous
foreclosures, tax liens, or court judgments against
you. They combine this information with your payment
habits to form a summary of your credit history.
Creditors or lenders then evaluate your report and
determine if you meet their criteria to qualify.
Your credit report is a revolving reflection of
your personal information and how you manage your
finances. Information is typically submitted to a
credit bureau by your creditors, by the court system
or from other public records, and by debt collection
agencies.
It's crucial to Monitor your credit report for
inaccuracies, and possible Identity Theft. It's just
as necessary in today's world, as brushing your
teeth every day. When you monitor your credit report
and credit score, you can nip any errors in-the-bud.
An error on your credit report can negatively affect
your buying power, and the worst case scenario is
identity theft.
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