Social Media Man

Now that we seem to be in a new era of tighter credit, your credit report is even more important than ever. Whether you know it or not, your credit report can have a massive impact on your life.

For example, virtually any time you apply for credit – whether it is a loan for a car, an extension to your mortgage, or an account at your favorite grocery store the people who look after deciding if you are credit worthy are going to check your credit report.

It seems that sometimes your credit report is the only thing they check. If it comes up looking rosy then you are good to go – you will probably get the credit you are after.

On the other hand, if your credit report comes back looking not so good you’ll probably be turned down, or at least the interest rate they offer you will be quite a bit higher.

The biggest reason you should keep tabs on your credit report is that it may be out of date or may contain information that is not accurate. If you are able to obtain your report, you can cross-check it for obvious mistakes, and monitor your future financial behavior in order to get it into better shape.

Checking your credit report and keeping it current and as accurate as possible is especially important if you have gone through bankruptcy. As you should be aware, bankruptcy will have gotten rid of many of your debts, so make sure that your credit report reflects these changes.

Even after you have gone through bankruptcy, potential lenders are interested in your credit report because they are well aware that people who have gone through bankruptcy must eventually try to rebuild their credit.

What is included in a typical credit report? First, it contains some basic personal information such as previous addresses, public records, date of birth and your social security number.

But even more important, it provides an overview of your bill paying habits and patterns. It shows if you pay your utility bills on time, or if you have missed payments on your credit cards. It also shows which accounts have been paid out, and how much you still owe on the ones that remain.

What does the credit report tell potential lenders about you? It makes no official judgment. It is simply a collection of information that has been reported by various lenders. The lenders themselves will draw judgments from the report, deciding whether they are prepared to extend you further credit.

The very fact that the contents of your credit report come completely from lenders suggests that it may contain errors, omissions, and stale-dated information. Keeping a close eye on it is the only way you can ensure it is accurate. If you find errors you can do your best to have them adjusted.

Second, most lending agencies and institutions consider your credit report a good general indication of how you handle your personal finances. Many people use their credit report as a guide to clean up their act and do better in the future. It is also an indispensable tool for helping you decide to enter into a debt consolidation or bankruptcy arrangement.

How do you obtain your credit report? There are two popular methods. The first is to write and make a request to a credit agency such as Equifax or Experian. For a small fee, they will send it to you in the mail.

A more popular method these days is to obtain your report directly online. This is a simpler and faster solution. Once again, you will pay a small fee. Shop around though, as some services will provide you with a free trial.