Credit Reports
A credit report contains your credit score. This score ranges from 300-850, and the higher your score, the better your credit rating. When your score is high, you can get lower interest loans, when you score is very low, you might not have any luck getting a loan. It's very important to know your credit score when you are trying to sort out your finances, or looking to get more financing.
Who uses a credit score?
When you apply for a loan, the lender or creditor will contact a credit reporting
agency to obtain your credit score. Often this score alone is used to determine
whether you will get your loan. Your full credit report will contain your credit
score, and also other information that was used to determine your score.
Reviewing your credit report will contain a lot of information. Your payment history for
debts will be listed. You debt level will be listed, which is the ratio of amount of debt
vs amount of available credit, the length of your credit history, and the number of credit
inquiries. All of these components (and maybe more) help determine your credit score.
You want to verify that all of the information is correct. For example, if there are several
late payments listed, and you always pay on time, get those corrected to
help increase your score. Always check to make sure that there are not unauthorized credit
cards or loans listed, and if so you might have become a victim of identity theft.
Examine your report carefully for accurate information.