Everyone knows that the information in their personal credit report is what credit card and finance companies use to base their offer to extend credit to you or not, but do you know what is actually in your credit report? Did you know, depending on what information your personal credit report holds, it could determine if you can buy a new home or if you have to live in a box?
Most people think that, when a company looks at their personal credit report, that company is just looking to see what their credit score is and if they have been on time with their payments. True, they look at those things, but the companies also look at how much debt you have compared to your income. Even small accounts, such as those with Fingerhut or some other small mail order company, can be a deduction toward the income considered when you apply for a loan.
If you seem to have more money going out than you do coming in, most of the time the credit card or loan company won’t touch you. By law, if a certain percentage of your income is not available to make the payment on the loan you are trying to get, the loan companies can not loan you any money, whatever the reason may be that you need it.
Your personal credit report also shows if you are, or have been in the last seven years, delinquent with any payments to any company. If you have been thirty days or more late on any payment, rest assured, it’s on your credit report. This tells the lender that you might be a risk to do business with, depending on how long the account was in delinquency and if it has been paid off.
Your personal credit report will also show, for up to ten years, if you have filed bankruptcy. Forget the rumor that a company is more likely to do business with you if you have filed bankruptcy because you can’t file it again for so many years, it’s just simply not true. A bankruptcy shows a credit card or finance company that you tend to get yourself in over your head.
Does your personal credit report say great things about you, or will you be living in the box for awhile?
Categories: Credit Reports 101 , articles
