Why Your Credit Report Is Important
When your lenders report your credit history to various credit reporting agencies, this information is contained in your credit report. This information is then used to generate your credit scores, including your FICO Scores. If you are engaged in a credit dispute near Leesburg , you need to obtain a copy of your credit report and discuss its contents with your credit lawyer.
Contents of a credit report
Your credit report informs lenders what type of credit you’ve obtained by listing the types of credit you use, the length of time your accounts have been open, and whether or not you’ve made your payments on time. As a result, it provides lenders with a broader view of your credit history than data sources like a bank’s customer data. This report also tells lenders where you live, whether you’ve been sued or arrested, and whether you’ve filed for bankruptcy. As a result, your credit report is a crucial piece of information when dealing with a credit report dispute or meeting with a credit attorney.
Importance of a credit score
Your credit report contains information of your borrowing activities, so it can help build your case when meeting with an identity theft lawyer. Credit scoring is useful because it combines all information about your financial history quickly, fairly and consistently. The three major credit bureaus are Equifax, TransUnion, and Experian. As these companies collect information on millions of borrowers, lenders will usually buy credit reports on you as a perspective applicant when making credit decisions. This means that your credit score affects your ability to obtain a loan, buy insurance, or rent a home.
Maintenance of credit report
Each time you apply for a new line of credit, your creditor will request a copy of your credit report from one of the three credit bureaus. Your creditor will then evaluate your credit report, your credit score, and income or debt information to determine your credit approval and future interest rates. If this creditor approves you, your new line of credit could become a part of your credit report within 30 days.