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Credit Report

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38 views7 pages

Credit Report

Uploaded by

Anas Zia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A Guide to Credit Report: Definition,

Making and Working of Credit Reports


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Meta Description: Keep track of your financial situation by making a credit report with credit
bureaus. Try keeping a good record for limitless benefits in everyday life.

Understanding and Creation of Your Credit


Report Made Easy

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It’s not easy to prove your financial trustworthiness to anyone. A credit report is an acceptable
way to do this. A favorable credit report proves your insightful financial handling and healthy
lifestyle. It can ease your way to achieve your future goals.

By reading this publication, you will know what a credit report is, how to make a credit report,
and how you can make the most out of it. If you are searching for an excellent legal advisor to
help you with your credit history, search no more! This article is your complete guide to
assembling your credit report yourself. Let’s begin!

An Introduction to Credit Report


Have you ever noticed that when you apply for a loan or study scholarship, the authorities
require your history and credit score? If you make a credit report beforehand, your financial
document problems will be sorted. So, what is a credit report? A compilation of all your credit
usage is a credit report. For any economic agreement, a credit report is the most important.

According to Wikipedia, a credit report is a compilation of the history of all you borrow from
banks, credit card companies, and the government. This history is assembled and stored as
user-friendly data on one of the following consumer credit bureaus,

1. Equifax

2. TransUnion

3. Experian

What Does a Credit Report Include?


Now that you have understood the meaning of a credit report, we look forward to the primary
points included in it. Following are the credentials your credit report consists of:

Personal Information
The first section of your credit report consists of your personal information, mainly including,

● Your full name

● CNIC

● Your permanent address

● Permanent phone number

● Social security numbers

● Any credit partners

● Past and current employers

● A personal statement that justifies you for late payments or increasing debts.

Banking Details
The second section is all about your banking activities. All kinds of accounts and their respective
information, such as,

● Opening date

● Account details
● Payment history

● Revolving or interest debt

This information is included under the accounts section with great responsibility.

Collection Account Information


If you ever become over-indebted and cannot pay back your credits, your account is bought by
collection accounts. Your credit report shows this information, too. The presence of collection
accounts in the credit report devalues it. This is so because it hints at your irresponsible
handling of credits.

Public Records
All types of recorded bankruptcies, liens, and civil judgments directly or indirectly related to you
are mentioned in your public record section of the credit report. Also, the date of issuance and
the court name are written along with the record. This section deflates your credit history if it’s
filled with bankruptcies and lawsuits.

These public records remain on your credit report for at least seven years. Indirectly, your
adverse credit report will create difficulties getting loans and future mortgages.

Inquiry Reviews
Two types of inquiries are indicated at the end of the credit report.

Soft Inquiry

Sometimes, unknown agencies see and use your credit report for marketing purposes. This is
called soft inquiry, and it’s mentioned in your credit report. It is harmless.

Hard Inquiry

It is called a hard inquiry if the taxation and law firms inquire about your credit report to check
your paid and remaining credits. Banks and governments do this to keep track of unpaid debts.
Hard inquiries also belittle your financial status.

How to Make a Credit Report?


To create a credit report, you must get assistance from credit bureaus like Equifax, Experian,
or TransUnion. They have databases that are devised to collect your information by themselves.
To understand the process deeply, keep reading.

● You first send your information to credit bureaus, e.g., you send your info to my Equifax
account.

● Then, the bureau itself will sort out all your public records, collection accounts, and other
banking data.

● Using the data collected, the credit bureau presents you with your credit report. You can
update your account, see any changes made by authorities, or follow up with your
accounts through the credit bureaus for free.
Is Your Information in the Credit Report Safe?
Yes, the credit bureaus always keep track of anyone who uses your information. Moreover, only
some people can access your personal information with their permission. Any company or
organization wanting your credentials must register with the credit bureau first.

Not all companies are registered by credit bureaus. A long chain of tests considers the purpose
of the company’s investigation before registering them. Bureaus also verify the validity and
privacy policy to save you from fraud.

What is a Credit Report Affecting?


Do you know that credit history affects your daily life in so many ways? The following are some
ways credit reports can affect your daily rhythm.

While Renting a Place


Your landlord or leasing firm will likely check your credit report before lending you a house or
apartment. If your credit history is not up to the mark, your request might be declined. However,
if you are already on rent, timely rental payments affect your credit score well.

Applying for a Mobile Service


If you are switching your mobile service or getting a new phone, your application might be
declined due to late payment issues mentioned in your credit record. Or you might have to pay a
larger deposit before buying anything. On the other hand, if you have a favorable credit report,
the mobile companies might exempt you from any down payments and make an easy
installment plan for you.

While Paying Bills


Most utilities and mobile companies are registered with the credit bureaus. Your billing time and
amounts are directly reported to the bureaus. In this way, your bill paying directly affects your
credit report.

Impact on Your Job Applications


All your current and past employers have a license to see and analyze your credit report before
hiring you. A responsible credit history with a positive credit score can help you secure a decent
job quickly. Similarly, a bad credit report can deprive you of your career or opportunity.

Conclusion
Your credit report is a summary of all your credited transactions and your financial records. This
article explains all the sections included in the credit report, such as personal details, public
records, inquiries, and creditor banking information. You can quickly get your credit report by
giving the necessary information to any credit bureaus working legally. Experian, Equifax, and
TransUnion are working nationwide in the USA. We have explained how to make a credit
report so you can access it easily. Credit reports also affect your daily life. They make your
future transactions easy if you are a financially responsible citizen. Get started with a credit
bureau for your credit report today and get hold of your finances!
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