Credit Report – What Information It Provides?

By looking at the benefits a credit card provides you, everyone wishes to have one as they provide ease in everyday shopping. But it is not easy for everyone to get these 2016 best credit cards. Only those who are eligible get to use it. Being eligible for the credit card is based on your credit scoring. Your credit report has your credit score and it determines whether or not your application will be approved. This credit score is called the FICO score. Your score ranges from 300 to 850. More the score more are the chances your application will be approved. Data is taken from your report and analyzed using different mathematical models to determine whether you will be able to pay back or not. Factors like your previous credit presentation and present level of debt are considered.

Credit Report - What Information It Provides

Your credit report consists of the following information:

The first portion of the report contains your personal information like your social security number, your residential addresses and employment record. Your employment record is very important as it will help the score assigners to determine whether or not you will be able to pay back your bills.

The second portion consists of the number of accounts you possess. It also includes the types of accounts you possess whether they are open or closed. Credit analyzers take into account all the accounts you possess and try to find out either you will be able to pay all your outstanding debts or not.

The third section contains the details of every individual account including the date that particular account was opened, your contact number, account number and other details like these. Your outstanding balances are the object of interest for the report analyzers as they will tell if you can pay back in the future or not.

The fourth part of your report consists of the inquiries. These inquiries may be soft or hard. Soft inquiries are those made by yourself or your present creditors who want to assess your position. They do not have much impact on your score but hard inquiries negatively affect your score and consist of the inquiries made by the potential creditors. When you are applying for any kind of loan, these prospective lenders will inquire about your score and this inquiry will become a part of you report.

The next part consists of the collection agencies information. The report makers also take into account the liens, foreclosures or bankruptcies faced by you.

You have the right to challenge any wrong information included in your report. Once you have challenged anything, the agency has one month to respond to your complaint. If the said information is untrue, it will be removed from your report. But, usually, any information that has been included in your report remains there. To get benefit of the 2016 best credit cards, you need to possess a good credit score. It is very important for you to make timely payments so that your score is not affected.