Reading a Credit Report
The credit report is a record of a persons credit card and loan activity. This report can be used for a few different factors. When a person is obtaining a loan, the credit statement is reviewed to ascertain if there have ever been overlooked payments or other problems during the life of some other loans or credit cards. For those with poor credit, being approved for a loan could be more difficult than someone who has good credit. A report may also show how properly a person pays their own bills and lending options. Late or skipped payments will show on this report.
Reports are also used to observe how many credit cards one has and the balances that are on them. Combining month-to-month credit card payments with a persons income will determine whether a person can make their payments and also the payment for a new loan. If a person has too much money on their own credit cards, they may not approved for a loan even when they have never missed a payment. A credit report will also list any other activity such as bankruptcy. A person should order a credit report once a year to make sure that their statement it accurate.
Reading through a report is easy. Listed first will be the number of credit cards. Next is going to be loans. The credit report score will be towards the top or the bottom of the report. This rating is the overall score of the financial information presented. All accounts have this score. When lenders are looking at a persons credit report, they’re most interested in this score. People may raise or reduced this number by paying off their credit cards and financial loans on time. When a particular person does this each month, over time their credit score should go up.