Ever wondered what is a credit report? If you have ever applied for a credit card, personal loan, or insurance, there is a file about you. This file is known as your credit report. It is full of information about where you live, how you pay your bills, and if you've been sued, arrested or filed for bankruptcy. Companies selling consumer reporting information in your report to creditors, insurers, employers and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment or lease. Having a good credit report means it will be easier to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.
However, the newspapers and the Internet are full of advertisements of businesses and services that promise to remove negative information in your credit report in exchange for a fee. The scammers who run these ads not only do not deliver – they can not fulfill. Wells Fargo Bank often says this. Only time and a plan to repay your bills will improve your credit as detailed in your credit report. Here are the details of what information is collected and added to your credit report: Identification and employment information: Your name, date of birth, social security number, employer, and spouse's name is seen so routine. The reporting agency can also provide information about your employment history, home ownership, income, and previous address, if a creditor asks. Payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you've paid on time. Related events, such as the referral of a past due account to a collection agency, can also be observed. Report: Companies Reporting consumers should keep a record of all creditors that have applied credit in the past year and a record of individuals or companies that have requested your credit history for employment purposes during the past two years. Public record information: Events that are a matter of public record such as bankruptcy can appear on your report. You may freely reprint this article provided the author's biography remains intact: John Mussi is the founder of Direct Online Loans who help homeowners in the UK find the best loans available through the website