Nowadays, people no longer carry much cash in their wallets. This is because they no longer need them when buying things. If it is just small items, there is always a credit card. If you wanted to buy a car, a car loan is taken. If it is a house you fancy, you can always get a mortgage. Even an education can be obtained with the help of a student loan.
Getting a loan or any other credit for that matter is not so simple. The bank that will issue the credit will not do it blindly. They will first check your credit background and only when they find it satisfactory will they approve your loan. These financial entities will be able to check your credit history through credit reports. Given this fact, it is vital that you first review all your credit reports before you decide to get a loan and find out your chances.
CRAs or consumer reporting agencies are the companies responsible for gathering and then selling credit information. The most typical type of a CRA is a credit bureau. There are 3 major operating credit bureaus in the country and some small ones. There are also 3 types of credit reports, the annual credit report, the business credit report and the consumer credit report.
Experian, Equifax and TransUnion are the 3 major credit agencies where people get their credit reports from. All three maintain the “annual credit report”. This credit report can legally be requested by individuals from any of the three agencies every year for free. An extra copy will require a fee though.
Most of the credit agencies in the country maintain the “consumer credit report”. This one however is not free of charge but can be requested anytime of the year as long as the fees are paid. You can access the consumer credit report online. Likewise not free of charge is the last type, the “business credit report”. It contains the credit history of a certain company or business.
A credit report basically contains several information, first of which is the “identifying information”. This includes the name and aliases, the addresses and social security number and other pertinent details such as the date of birth, employer details and your spouse’s identifying details.
Also in the report are the credit information and as well as the public record information which includes banks accounts, loans, court records, etc.. Lastly, the credit record will also include recent inquiries such as the people or companies that obtained credit report copies the past year or two.
It is vital that you get a copy of all three credit reports and review them well. They are quite important if you wanted to get future loans. By reviewing them before applying for a loan, you will prevent possible problems such as inaccuracies or errors. Credit reports are known to contain errors. Likewise, you will know the chances of your loans if you already know what your credit report contains. No unwelcome surprises.
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