Credit report is something that portrays your payback ability. Maintaining a good score will help you get loans easily from creditors for your business or house mortgage. You might have seen your credit report, but understanding it completely involves more attention. To best utilize something a deep understanding is always essential. Here we list down some important points to know about your credit report.
1. Three credit reports:
There are always three credit reports pertaining to three credit bureaus- Equifax, TransUnion and Experian. Knowing all the three is important to have a crystal clear understanding of the credit score. Most people are not even aware or do not check all three. The information in all three reports is different. All this information is surveyed by creditors when they check your credit score. Some governments allow you to review these reports at least once in a year free of cost.
2. Keep a track to avoid disputes:
Register for free or paid alert services for any credit changes. Be aware of every action happening on the credit score. This will help you against thefts or any kinds od credit bureau disputes. Keep a track of the score constantly and pay any debts remaining.
3. Basic Information:
Cracking down a credit report is not difficult. All the information is summarized in the categories- Personal Information, Credit History, Public Records and Enquiries. All the three reports provide information in a similar structure. If you understand it once with the help of customer care if required, monitoring it again will become simple.
4. Get things right:
In case of incorrect information on the reports, they can be corrected if reported on time. There are credit repair agencies to handle any disputes; however, if possible, you can get them resolved yourself. For example, any unissued credit card on the report can be claimed under disputes and the information can be corrected. Keeping a track of your reports will help you at this time.
5. Time heals:
As per Equifax, all negatives like payment history, unpaid credits, late payments, collections accounts etc. remain in your report only up to seven years. The accounts that have been marked paid remain up to 10 years. This may differ from state to state and may need to be confirmed. Since, positive report remains longer, it helps people build up their bad credit.