Your Credit Report: Why It’s Important

 What is a credit report? A report outlining the credit history of an individual which includes current and previous debts, payment amounts, late payments and past due amounts and other related information on every credit source the individual has used. Your credit report will also include your personal identification information, such as, social security number, birth-date, full name, past names used, street address both current and previous, a well as past and present employment information.

There are 3 separate bureaus that maintain these records, TransUnion, Equifax, and Experian. When you apply for a new line of credit, credit limit increase, a new job or an apartment, it is likely that your credit report will be pulled and examined for credit worthiness. The information contained within your report helps lending agencies, employers, and landlords determine if you are likely to pay your debts.

It is a good idea to monitor your credit report on a yearly basis. You are entitled to a free credit report every year. You should request your report from the 3 credit bureaus and examine it closely for errors. Be sure to pay special attention to the sections of your report that shows where you have applied for credit and your payment history, as well as your current personal information. Credit fraud is a major problem, and if it goes unnoticed, there can be irreversible damage done to your credit history.