What is a credit report?
A consumer credit report is a document containing a record of an individual’s personal history. Credit grantors are permitted by law to review your credit report to objectively determine whether they should grant you credit. They can only check your credit when you ask them to do so, through an application process. Once you have an account with a Credit grantor, they have the right to look at your credit at any time until the account is closed.
Lenders, banks and collection agencies are typical companies that report information to the credit bureaus. Most of the information on your credit report comes directly from these companies. All information is manually input on their computer and downloaded into the credit bureau’s database.
What kind of information does a credit report contain?
A consumer credit report contains four types of information: Identifying information (who you are), Credit information (how you have paid your bills), Public Records information (any judgments, bankruptcies, etc), and Inquiries (where you’ve requested credit).
Identifying information includes:
• Your name
• Your current and previous addresses
• Your social security number
• Your year/date of birth
• Your current and previous employers
Credit information includes credit accounts or loans you have with:
• Banks or lending institutions
• Retailers
• Credit card issuers
• Collection Agencies
Public record information includes any information that’s contained in state and county court records, like
• Bankruptcies
• Tax liens
• Monetary judgments
Inquiries:
Inquiries indicate you have applied for new credit that could result in additional debt. Potential lenders may view multiple recent inquiries on your credit report as a sign you may be overextending yourself so too many inquiries will reduce your score. We’ll talk about that in a minute.
What is credit monitoring?
Credit monitoring is a service that monitors credit reports for key changes in your credit. Any changes could be indications of unauthorized activity, fraud or identity theft. The credit monitoring companies should notify you of any changes so you can verify and take action if you feel necessary.