Credit Reports

Whenever you have applied for a loan, credit card, mortgage or a store account, your credit report will have been accessed by the lender. Credit reports come from the credit files compiled by the Credit Reporting Bureaux. Lenders base their decision on whether to advance you a loan on the contents of your credit report. It can also affect the interest rate they charge you.

Credit reports contain information about your current financial obligations:

• How you repay your regular bills.  
  
  
• The number of credit accounts you have and when they were opened.
  
  
• The types of account you have - mortgage, credit card, personal loan and so on.
  
  
• The credit limits on each account.
  
  
• How much of the available credit you are using, and your monthly committments

As well as details of your credit history - How well you repaid past financial agreements:

• Did you pay bills on time?
  
  
• Did you always repay loans on time and in accordance with your loan agreement?
  
  
• Did you ever miss payments?
  
  
• Were you ever taken to court for non-payment?

Credit reports also provide a lot of personal identifying information such as your full name, your current and previous address, telephone number, Social Security Number (in USA), your current and any previous employers. They will also show which lenders have been given a copy of your report and those who merely viewed it.

Sometimes there are errors on your credit report and unless they are corrected, your creditworthiness may be affected. Any disputes over the contents of your credit report are also recorded within your credit file.

In short, your credit report can determine whether you get the additional finance you want, it can affect a new job application, and it can affect your application for rented property.

It pays to check your credit report regularly, and not just for your ability to borrow money, get a new job or rent an apartment. You also need to check that you have not become a victim of Identity Theft which is an increasingly ocurring crime, which can affect anyone.