In my previous article I addressed the importance of those who want to rebuild their credit, on its own, testing their credit report to find areas that affect their credit score.
When a consumer hires a consultant to fix their credit, advisers to pull your report from the three major credit bureaus, Trans Union, Equifax, and Experian, look for differences, and then write a formal letter to slow to have any inaccurate or obsolete information removed.
The reason most people hire a professional credit counselor for credit reports can be very difficult to understand. In this article I hope to break up what is in the credit report so that readers know what to look for.
Credit report has five main parts:
Personal Section
This section contains a list of all your personal information such as your name, address, date of birth and Social Security number. It will also list their employment information.
Credit History
This is the most important part of your report. This is where all the open lines of credit, also referred to as trade lines, such as rate lines of credit (mortgage or car payments) or a revolving line of credit such as credit cards or some bills are listed.
Accounts that were closed will be listed here. Each account listed under the credit history will determine the date the account was opened, the original and the existing balance and whether the account is paid as agreed or paid late. It will also determine how late the account paid in thirty days increments (30, 60, 90 or 120 days). Obviously, later, your payments are more impact your credit score.
Request Section
Here, any and all companies that have your credit within the past 24 months will be listed. More inquiries hurt your score. They show a pattern of you are turned down for credit especially when they are seekers of the same types of creditors. To avoid the accumulation of more questions, I advise customers that will be shopping for a loan to a copy of your credit report with them. This eliminates the need for a lender run your credit and add another query to your profile.
Collection Accounts
This section is where any accounts that are assigned to a collection agency will be listed. Applications listed here will identify the creditor, original amount of debt and delinquent amount owed.
Courthouse Record Section
In this section, also known as the Public Records section, any civil action brought against you in the local, state or federal court will be listed as well as any bankruptcy filings, tax liens or judgments against you.
One important area of your credit report that many people do not take advantage of a consumer statement in his report. This section allows you to make a brief statement to explain any derogatory entries on your report. For example, if you lost your job, or are off sick, and the account fell behind as a result, the statement will allow consumers to give you an explanation of what happened. In the case where the lender can make discretion, your statement of consumers can tip the scales in your favor.
For people interested in rebuilding their credit on your own I recommend tools offer. Paket is less than $ 40.00 and gives no-it-your selfer everything they need to rebuild your credit profile;. From both a challenge and eliminate the differences in their credit reports reorganize its finances to avoid future credit problems in the future
