How to read a credit report?

08-April-2015 written by : FSI-Team

Your credit report contains a variety of information and itemized data about where you work, live and how you pay your bills (in time or not). It also may show whether you have legal cases pending, if you have ever been incarcerated or have recently filed for bankruptcies within the last 10 years. Credit reporting agencies or better known as CRAs or otherwise called credit bureaus analyze, compile and offer the complete credit report to a variety of lenders, corporate and consumers all around the world.

Many financial advisors propose that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, for example, buying a home. Checking in advance the accuracy of the information in your credit file could speed the credit-granting methodology; correcting your credit report, if any errors is an unquestionable requirement.

Because businesses use this information to evaluate your applications for credit, insurance, employment, and different purposes allowed by the finance ministry, it is important that the information in your credit report is complete and accurate.

Whenever you apply for any kind of credit or financing, a credit report is pulled from at least one of the three major credit bureaus by the lenders. You would want an absolutely clean and error free credit report under your name. While there surely are many smaller credit reporting bureaus all around the nation, virtually every credit bureau is affiliated with Experian, CIBIL, or Equifax.

At the highest point of the credit report you will find all your basic information, for example, your full name, present and previous addresses and employers, pan card details and date of birth. Your spouse's name may also appear if applicable. In addition, you may notice several variations of your name listed. This can happen when certain creditors provide wrong or mistaken information. These numerous errors usually affect your credit report to great lengths. It is however, important to make sure that your contact address is right. Any error in the address could lead to massive identity theft.

The following section is your credit history. These obligations could include real estate mortgages, credit cards, car loans, or any other credit transactions. What if you should find a blunder on your credit report? When you have discovered a blunder, contact the credit bureau that issued the credit report and state in writing what you found to be inaccurate. You will find the contact information listed at the highest point of your credit report. This will help get you on the road to a clean credit report.

The various credit reporting agencies must always investigate and analyze the error claims within a time span of 30 days. After that, they will contact the involved party that basically filed the claim and attempt to solve the dispute as quickly as possible. Always keep in mind that you have every legal right to file for a dispute against any inaccurate, wrong or misrepresented information which appears on your CIBIL credit report, and should always do as such in a timely fashion. When you properly learn and understand how to read, analyze and understand your credit report, you are moving towards a more secure financial future. Obtain your CIBIL, Equifax or Experian credit report today!



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