Your Credit Report from a Creditor’s Perspective

In this day and age, the one thing that best reflects how well or how poorly you are doing financially is your credit report. How well you score on your report determines whether you can afford to make large expenses or not, such as buying a house or a car. It is also crucial in determining whether you can get approved for a loan or not. A good credit score makes all the above mentioned situations possible, while a bad rating can get your loan application denied outright. It is therefore important that your credit report is accurate. Errors in your credit report can lead to delays and aggravation. They can also get your application declined even if you have a good credit rating. It helps to request a copy of your credit report before filing any loan or credit card application just to make sure that all of the information creditors will see on it are correct.

Personal Information

While this section of your credit report does not impact your score, it does serve as your identification. The fields included in the personal information section are as follows:

  • Legal Name
  • Current Home Address
  • National Insurance Number
  • Birth Date
  • Employment Information

Make sure to have all the required data filled out correctly in order to avoid delays in filing your report.

Credit Accounts

The credit accounts section of your report is also sometimes referred to as your trade lines. Establishments that you have had credit with submits the following data and includes them onto your credit report:

  • Type of Account (credit card, mortgage loan, etc.)
  • Date the Account was Opened
  • Credit or Loan Amount
  • Current Balance
  • Payment Records

Your payment records also show any late payments that you may have made in the past.

Credit Search

The credit search section of your report shows a list of every individual or company that you have allowed to run your credit in the last two years. The list is generally divided into two sections:

  • Voluntary Inquiries – These are requests that you have made for your credit report
  • Involuntary Inquiries – These are when lenders and other credit agencies request for your report

Review this section of your report and make sure that no one has run your credit without your knowledge. If you happen to find any anomalous entries, especially in the involuntary inquiries section, identify the lender that ran your credit and find out why they submitted an inquiry.

 

Public Records and Collection History

This section provides information that is readily available for public viewing, including records obtained from county courts and collection agencies. Other details include:

  • Bankruptcy Claims
  • Insolvency
  • Home or Property Repossession
  • Unpaid Debt Under Previous Address
  • Any Fraud Committed
  • County Court Rulings

It is important that the information reflected in this section is accurate. If you find errors, contact the lender or agency listed in your report and have them update the information on your report. Remember that public records don’t always get updated automatically, so be sure to check for errors and make all the necessary inquiries appropriately.

Familiarity with what information is on your credit report can help you prepare for any questions that lenders or credit agencies might have for you. It is important that your report accurately reflects your current financial standing, as any inconsistencies may result in your loan or credit card application being declined.