Understanding Your Credit Report
Your credit reports from TransUnion, Experian, and Equifax play an important role in determining whether you can obtain a mortgage, other loan, or credit card account. If identity theft causes your credit score to unfairly plummet, you probably know that calling a credit report lawyer in Reston is essential to restoring your financial wellbeing. However, some consumers never truly learn about credit reports until their scores have been adversely affected. Before you buy a car or invest in real estate, it is essential to understand your credit report. Contact your credit report attorney and read this guide to better understand how to read your credit report—and what lenders can learn from your credit score.
It’s important to review your credit reports regularly. If you notice any abnormalities, you can contact an identity theft lawyer in Leesburg for help with a credit report dispute. When reviewing your credit reports, you’ll notice that they have multiple sections for your personal information, account details, inquiries by creditors, and public information such as court judgments and liens.
Your credit score tells lenders how good you are about repaying debt. When it comes to credit reports and your credit score, there are three companies you need to know: Equifax, Experian, and TransUnion. These three agencies compile the reports that determine your credit score. For example, each credit agency will have access to your name, Social Security number, the names of people who request your credit report, and comprehensive information about your finances.
Your credit score is compiled based on several kinds of information. First, your payment history makes up 35% of your score. If you pay bills late, your score will decrease. Your debt-to-credit ratio makes up 30% of your score. Your credit history comprises 15% of your score, and it shows how you have managed your finances in the past. New credit accounts, or inquiries from companies where you have applied for credit, make up 10% of your credit score. Finally, diversity of credit, or how many different kinds of credit you have, is responsible for 10% of your score.
The best way to understand your credit report is to keep tabs on your credit reports and numbers. Experts recommend checking with each of the three central agencies named above once per year to make sure that there are no inaccuracies in your report and that your credit score reflects your true financial history. If you do find a credit report error, contact a credit lawyer to begin the credit report dispute process.
You can hear more tips for understanding your credit report by watching this video or consulting a credit lawyer. This expert explains how you can include a consumer statement in your credit report, which will provide additional information to anyone who views the report. For example, you might wish to convey that you had to retain the services of an identity theft lawyer.