Basics about Credit Report


When you make financial transactions or you get yourself into a huge financial endeavor, it is most probably that you will need your credit report. Lenders and mortgage institutions will need your credit report as it is a very important aspect to evaluate your financial capacity. This document has all your credit activities, your financial accounts and the loans you had and currently paying. If you plan to invest in a home or let us suppose, an Encinitas Real Estate property, it is preferable that you take a good look of your credit report first before you start visiting Encinitas Homes for Sale and begin the home buying process. It is always easier to update, change or fix the report if there are errors if you review it months ago before you really need it. You have to be sure that the credit report is accurate  because this pieces of paper will have a very big impact to the decision that the lender will make for your application. 
How to Get
Credit reporting agencies (CRA) are the sources of your credit reports. The CRA is the agency that gathers all the credit information of every company or individual. They will collect information about the credit you made and then store it in their secure databases. There is a fee when you get your copy of your credit report.  The most popular type or CRA is the credit bureaus and there of the major names in this industry are Equifax, TransUnion and Experian. Every year, these credit bureaus give free copies of your credit report so always take advantage of that. You can also go to small credit reporting companies who specializes in the local market. 
Where the information is coming from
You may ask yourself where these credit report companies go to get information about your financial and credit activities. Well, banks, mortgage companies and business establishments where you applied for credit are their main sources of information. If there is a department store that gives you a credit card or a commercial bank who accepted your loan, they can go there and seek for information. 
Who looks at my credit report?
Besides you, lending companies can also request for credit reports. If you apply for a loan to a certain mortgage company, expect that it will request a copy of your credit. Your employers are also allowed to have access to your credit reports because it can help them assess you deeper for employment, promotion or reassignment. Government agencies can also look at your financial standings by reviewing your credit reports, especially if they need to verify your standing regarding eligibility to government benefits. Insurance companies also use your credit information to consider you for an insurance policy. 
Why review a credit report?
You should know that credit reports are not always as accurate as you want it to be. Months or years before you apply for a home or a car loan. Make sure that you review your credit records first and see if there are inconsistencies in the report. There may be details missed during the documentation, or the report may include outdated information about your credit activities. You need to check your report as early as you can so you have enough time to make necessary revisions to it. 


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