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5 Things Everyone Should Know About Credit Reports

Posted on 2016-02-18 09:00:50

College student on cafeThere is no shortage of misinformation floating around concerning credit. Here are five important things everyone should know about credit reports. 1. Credit matters for more than just credit applications. There’s no getting around it. Whether you are applying for a mortgage, auto loan or credit card, renting an apartment or getting cable TV, your credit matters. Your credit report can determine not only whether or not you get credit, but on what terms. If your credit is bad, you may be denied credit or have to put down a larger deposit. Credit is also used in other surprising ways, such as by employers who may review your credit report as part of the application process. 2. Credit scores are not part of your credit report. The three national credit bureaus—Equifax, Experian and TransUnion—store the information reported to them by creditors and others. Your credit report does not include your credit score, but rather your credit score is calculated based on the information in it at the time someone requests your credit score. Because the information in your credit report can change often, your credit score may fluctuate from day to day.

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3. There are no joint credit reports or credit scores. Credit reports are files maintained on individuals regardless of marital status. However, anything you co-sign for may become part of your credit report. Joint accounts will usually be reported on both individual’s credit report. If you are an authorized user on someone’s account, the credit history will be reported on both accounts, but only the actual account holder has liability for the account. 4. There are no quick fixes. If you’ve made some poor financial decisions in the past, it takes time for your credit score to recover. Negative items such as bankruptcies may stay on your credit report for seven or even ten years; however, the impact of negative items on your credit score should lessen over time. 5. It is up to YOU to monitor your credit. You are the only one who knows if the information in your credit report is accurate. With information being added sometimes daily, it’s important to stay on top of your credit report. With MyFreeScoreNow’s credit monitoring service, your credit report is monitored daily, and you are alerted whenever there are significant changes that should be verified. Credit monitoring is a proactive approach to staying on top of your credit.
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