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What is a credit report?

What is a credit report?
The first section of a credit report includes relevant personal information, such as your full name, credit report

By Manuel Tovar, June 30 – Hispanic Solutions Group

Hispanic Solutions Group By contributing with a better orientation to users or consumers, it provides them with the following information in order to achieve their objectives regarding a credit report, which most are unaware of.

Fellow users, a credit report is a summary of a consumer’s credit profile that includes details about their active and closed accounts, including payment and balance histories. The reports also include information on hard and soft credit inquiries, public records, and collections. Official credit reports are published by the three main well-known credit bureaus, which are used by lenders and other financial institutions to assess the creditworthiness of loan applicants, one of them TransUnion.

To help you get the most out of your credit report, we’ll show you what to expect when reviewing the document and how it can affect your credit score.

What does a credit report show?

The exact content and layout of credit reports vary by credit bureau, but the reports typically include the following information.

  1. Personal information:

The first section of a credit report includes relevant personal information, such as your full name, current address, and employment history. When reviewing this part of your report, make sure the following information is accurate and up-to-date:

• Names associated with your credit. One of the first sections of a credit report is a list of names associated with the consumer’s credit file. Typically, this includes the consumer’s full name, last names used before marriage, and any variations, including full names with or without a middle name or initial.

• Addresses associated with your credit. In addition, each credit report includes a list of addresses, including the consumer’s current address and any other addresses that were provided when requesting and opening new accounts.

• Current and past employers. This part of the report lists the consumer’s current employer, as well as all previous employers, their locations, the date of hire.

  • Spouses and / or Co-applicants. A credit report also lists the consumer’s spouse and any joint credit applicants.
  • Credit accounts

The most substantial part of a credit report includes a list of the consumer’s credit card, home loan, and installment loan accounts. Each account listed includes relevant details, such as:

• Basic account information. This part of the accounts section provides a summary of each account. The status section indicates whether the account is still open or closed and, if it was closed, whether payments were ever late. Usually this includes specific details like credit limit, highest balance, and debt to credit ratio.(also known as the credit utilization ratio).

• Payment and balance history. This section lists payment information in detail, including the complete payment history for each account, dating back seven years. Each payment record also indicates if the payment was late (and for how long) and if the account was sent for collections or if the consumer has filed for bankruptcy. The reports also list the monthly balances for a specific time period.

• Information with your contacts. This information allows consumers to communicate with their lenders and creditors by phone or by mail.

• Applicable comments. Some credit reports may include additional comments. For example, accounts closed include a note such as “Account closed at consumer request.”

  • Queries

Each credit report also lists any hard and soft research on consumer credit.Rigorous inquiries stay on credit reports for two years and typically affect a borrower’s credit rating for one year; Soft queries also last for two years, but do not affect scores.

When reviewing tough credit inquiries, credit reports indicate who initiated the inquiry and on what date. The reports also show the postal address of the requesting business, as well as details about the purpose of the inquiry, such as real estate. In many cases this section will say “Unspecified” so you may want to dig a little deeper if an entry looks suspicious. Finally, each entry includes the month in which the query will be removed from the credit report.

Because soft credit inquiries do not affect credit scores, these entries generally do not indicate the date they will be removed from the report. However, the reports still show who requested the consultation, the corresponding postal address, and all the request dates.

  • Public records

The public records section of a credit report lists any information related to legal matters such as bankruptcies, tax liens, and any monetary judgment against the consumer. This information is obtained from the courts and other government agencies. For example,if you ever filed for bankruptcy, the report will indicate its status and the matter will remain on your report for seven to ten years, depending on the type of bankruptcy. Alternatively, this section can be completely blank if there are no relevant entries.

  • Collection items

Finally, a separate section of the consumer credit report summarizes the delinquent accounts that were sent to a collection agency. Charges can negatively impact credit scores and remain on credit reports for up to seven years from the date the account is delinquent.

How to check your credit report

Consumers are generally entitled to a free copy of your credit report, from each of the three major credit reporting agencies, each year. This means that you can request a report, either individually or all at once. However, in the wake of the Covid-19 pandemic, all three bureaus are offering free weekly credit reports until April 20, 2022.

We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram to find more information related to finances. Also on our YouTube channel The Credit Channel to learn how to improve your credit. If you need help in repairing your credit, disputing debts that do not belong to you, or other services, call us at (612) 216-1599.