This Is How to Understand Your Credit Report -

This Is How to Understand Your Credit Report


In financial terms, your credit history is essentially a query which reveals how a person spends money, expenditures and it documents how debts are incurred an to who those debts are owed.

Potential employers and money lenders can use your credit report to ascertain if you’d be an acceptable risk or worth the plunge for either a loan or employment.

Your credit report can also determine how well you live, and by understanding how to read the information it in, you will be able to manage your finances and live a good life.

The Credit Report is your letter of introduction in the world of credit and finance; financial and commercial institutions evaluate their clients with various factors such as: age, income, financial dependents, creditworthiness, and payment history.

A credit report is obtained by having a credit card or bank loan, which allows the registration of information on the account affiliated with the bank.

In 2016, carried out a survey that revealed some insights into the state of credit reports in the US among those who do not check their credit reports, many of whom were millennials, and this was discovered:

  • 40% of millennials say they don’t know where to get a credit report
  • 34% overall say they never thought to check their credit report
  • 29% say they pay their bills on time, so no need to check their credit report
  • 26% say they don’t think credit report is important
  • 19% say they already know their credit score, so they don’t need to get a credit report.

If you want to understand your credit report, reading this article will open your eyes of understanding to it, and you will know the impact of the credit report, and how to understand the document.

Avoid defaulting in payment.

There is a particular clause on defaulted accounts in the credit report, which includes information about the total bad debts, the current defaulted balance, the name of the credit product, the date of loading, the case of default, the settlement date (in case of settlement), the original amount at the date of loading and the unpaid amount.

Reducing the number of credit cards

The report also mentions the number of credit cards in addition to the credit limit for each, and these cards affect the level of indebtedness and your ability to bear the payment of installments of other financing products.

Therefore, if you have several credit cards and do not use them, cancel them immediately until they are removed.

Reducing the debt ratio

According to the group of financing products submitted to it, the debt burden rate may differ from one customer to another.

Consequently, your credit report is good with the possibility of obtaining a new financing product whenever this percentage is less than the permissible limit.

You can either pay for it to be explained to you or use the free versions of reading, which can be found online, and one of such free business credit reporting service is known as credit signal; it is a free business credit reporting service offered by Dun & Bradstreet.

This free app allows you to keep track of your business credits and alert you when something changes your score.

One of its advantages is the access it gives you to both its online dashboard and mobile app once registered so you can monitor your progress; you can also choose to receive email alerts.

Know your Credit Report

The credit history shows if you have a healthy trajectory as a borrower and if your debt level still allows you to face new credit. It is how you can show that you know how to handle credit responsibly.

Thus, it is more likely to reach loans of a more considerable amount and term and lower interest rate.

Lose your fear of your Credit Report and know the information it contains to help you understand your situation as a borrower and how the granting institutions and companies will see you, these are some keys that will allow you to understand better how this report works.

Keys to understanding how the Special Credit Report works

1. Once a year, you can request your Special Credit Report via the Internet, fax, or directly at the Credit Bureau offices. Another service is the alert service, which notifies you when there is a negative record.

2. In this Credit Report, you will find all banks and non-bank financial credits, as well as credits granted for services such as pay television, cell phones, credits with department stores, and the rent of your house if your contract is signed with a company that belongs to the Mexican Association of Real Estate Professionals.

3. The reports contain information on the institution that granted you the credit, the balance to be paid, and if the account is current or has been canceled.

4. When your payments are up to date, your credit score or traffic light is green, a yellow alert is issued when your credit is 1 to 89 days late and a red signal when the delay is greater than 90 days, and a listed by the grantor as an unrecoverable debt.

 5. The Special Credit Report includes a history of your payment behavior for the last 24 months.

6. One of the main doubts of users is how long this history remains in the report. This depends on the amount of debt.

Benefits of a good credit history

Having a good credit history is vital because it significantly influences the bank’s loans or when acquiring a contract with a company or applying for a job.

Having a good track credit record has many benefits, such as getting a loan from any bank. It will also help increase your credit card limit with low interest and may provide you with more career opportunities.

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