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Understanding your credit report

Many people fail to correctly run a credit repair, simply because they think they understand a credit report. A handful of books are written about credit reports. Specifically, about understanding a credit report, but they are usually filled with a lot of useless information as they never really explain how to read a credit report.

A credit report is the main document used for assessing your credit score. Various sections affect this score in a negative or positive way. A credit score is the worthiness of an individual as a creditor which is concluded from information sourced from credit bureaus.

The first thing that you have to do is order your credit report from credit bureaus. You are entitled to one credit report from a credit bureau every 12 months but, you should at least have three credit reports when starting a credit repair. Although it might be scary to do so after suffering bankruptcy- it is something very essential and something that has to be faced. Credit reports are available freely nowadays thanks to new federal laws established in various countries. They are available from websites like Equifax, Experian and TransUnion.

The different sections of a credit report

After receiving your credit report, you will notice that it is divided into four sections, namely: identifying information, credit history, public records and inquiries.

The identifying information section-In this section you will find your name, date of birth and social security number etc… you basically find all the typical registration form information in this section. Be warned that it is very important to make sure that all the information in this section is accurate as lenders usually check it and require it to match with the information on your credit application. You can easily contact the bureau that issued the credit report and have them titivate it.

The credit history section– This section makes up most of the credit report. It includes all your credit history as the name suggests, including you mortgages, installment accounts and revolving.

The public records section-This section is very crucial when it comes to obtaining high credit scores; the empty it is the higher your score. It’s meant to list all your bankruptcies, tax liens and judgments.

The inquiries section– This section contains a list of all the employers, creditors and lenders that you gave permission to view your credit report. Any time a party requests your credit report an entry will be made in this section.

Understanding a Credit report is very important as it is the first leap to take when doing a credit repair. Statistics show that about 9.5% of the individuals that attempt this on their own fail simply because of this.

It is very critical to understand that consulting a professional is the best possible option when you are still totally new to credit reports. They can either do this service for you or offer you lessons at very fair prices.

By: Bryan Nakambonde



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