Generally a credit report is best prepared by credit bureaus that are qualified to do the needful. The professionals at the bureaus will compile:
a. Your personal information including social security numbers, phone numbers, and addresses. The information will also include details of your employment.
b. Information on any tax liens, foreclosures, divorce settlements, child support or bankruptcy.
c. Details regarding existing loans, credit card payments, late payments, defaults, car loans and so on. The information will include information on who gave the loan, the term of the loan as well as sources of income.
Today one can obtain a credit report online by contacting major players like Equifax, Experian, and Transunion among others.
From your PC itself you can make use of the many facilities offered by them. While there are genuine sites one must be aware that there are scams too. Surf the net to find out if there are any negative comments posted about any site that offers online credit reports. Always protect yourself from scams.
The main advantage of creating an accurate credit report is that it will enable you to get better rates on mortgages and loans and you will be able to use the report to quickly process applications. Since your credit worthiness is established financial institutions and others will be able to give you faster service.
Most credit reports will have a credit score. This indicates the "risk" element to lenders. The thumb rule is that borrowers with higher credit scores are less likely to default on payments. Borrowers with credit scores of above 700 get better interest rates and easier finance.
You can help yourself obtain a higher credit score by paying bills on time, paying at least the minimum amount payable on credit card bills, never defaulting on payments, reporting correctly all credit cards, accounts, and loans availed by you, and avoiding huge debts. Be prudent and own only a minimal number of credit cards.
Always check your credit report thoroughly for mistakes, inaccurate information, erroneous entries, and clerical errors. Be a knowledgeable person and learn as much as you can about managing finances, and your rights. In depth information can be had at: http://www.fdic.gov/consumers/consumer/news/cnwin0203/ch101.html#how and many other banking sites that host articles on credit reports.
There are laws in place that protect you and your credit information. Be aware of them and if you even suspect fraud or misuse of your information be sure to report it to the authorities. Agencies like FDIC and Federal Trade Commission are dedicated to protecting the consumers.
A credit report must always be kept up-to-date it can ease your life in many ways.
About the Author
Andrew Bermam is a freelance writer for Credit Report, the premier website for free credit report and credit score online information, credit history, credit score, credit reporting industry, advantage credit monitoring, credit report scores and many more. He also freelances for Payday loan site.
