Do You Know What Is in Your Credit Report?

Do You Know What Is in Your Credit Report? Many Americans don’t. Unfortunately, not knowing what is in your credit report can cost you money. This is because when you go to take out a loan, they check your credit score and determine what interest rate you qualify for based on your credit score. It may not be 100% apparent how this costs you money, because the money you lose is through the interest rate. If you end up with 7% interest instead of 5% interest on a $20,000 loan you pay over $2,000 more over a 10 year repayment plan.

What’s in Your Credit Report, and What You can Do About It

So what information is in your credit report? One item is your current credit lines. This includes credit card balances, car loans, and home mortgages. It is important to check your credit report at least once a year to make sure that no credit cards have been fraudulently opened in your name. If an identity thief opens a credit card in your name, it can wreak havoc on your credit score and make a real mess for you to clean up. Getting items like this taken off your credit report can be time consuming, so it’s best to catch them as soon as they pop up. Fortunately there are many services available for you to check your credit report for free.

Another part of your credit report is dedicated to credit inquiries. These are instances where your credit report is accessed. Since your credit report is accessed whenever you look for a line of credit, this is a way for credit companies to judge how much you are looking for credit. If they see that you are looking for credit fairly frequently, then they may judge you to be a bigger risk. For this reason it is important to make inquiries for credit sparingly.

The final item that’s in your record are public records. These involve overdue debts, bankruptcies, foreclosures, and other serious wage garnishments. Since these items stay with your credit report it is important to have your credit under control from the beginning. If you find you are slipping into unmanageable debt, it is important to contact a free credit counseling service before things go to far.

Understanding Your Credit is Invaluable

Now that you know what’s in your credit score and how it can affect you, you can approach your credit with a more knowledgeable attitude. If you’re interested in more credit counseling or debt management services, contact Advantage CCS today!