Breaking Down Your Credit Report is Easy?

Remember getting your report card growing up? A credit report is like an adult version. It’s permanent, and it paves the way for your financial future. A good credit report helps secure low-interest rates because banks and lenders are better able to trust that you will pay them back the money that you are borrowing from them. A bad credit score, perhaps full of late and missed payments, accounts sent to collections, and even a few repossessions will do just the opposite. If a bad credit score doesn’t scare off lenders completely, it will definitely amount to much higher interest rates. In short, a credit report shows lenders whether or not you are a high-risk borrower. It also is the basis of your credit score.

Credit reports are gathered, stored, and updated by three credit reporting agencies. These agencies, Experian, TransUnion, and Equifax, periodically contact your lenders for an update on your payments. Lenders report to them when they send your information to a collections agency.

Think of your credit report as a giant digital folder holding every minute detail of your financial history. Realistically, you should assume that every element of your finances will end up in your file folder. However, here are some examples of things credit agencies are looking for:

– Your Identification and Employment: This includes your name, your spouse, your birthday, your Social Security number, your current address, your previous addresses, your current employer, and your previous employers.

– Your Payment History: This includes information from banks, retailers, credit card companies, and additional lenders. It summarizes how much credit you have been extended, your current balances, and whether or not you have made your payments consistently.

– Any Inquiries: Credit-reporting agencies will keep a record of anyone who has requested access to your credit report, including those instances involving possible employment.

– Other Financial Public Records: Anything in state, federal, or county courts considered to be legal public record involving your finances will also be included. This could mean bankruptcies, foreclosures, lawsuits, and more!

Wondering what your credit report looks like? Each year, you are entitled to one free copy from each of the three credit-reporting agencies. Take advantage of this offer, and make sure you check all three! They may each include different information, and you need to monitor all of them equally. Information on these reports can stay on your record for up to ten years, so it’s important that you know what it says and what it means! If you find an error on your report, each agency has a process in place to correct them!

At Auto Masters, we are your car dealership and your bank.

Are you looking for the Buy Here Pay Here dealership in Middle Tennessee? Look no further than Auto Masters! We have the largest inventory in all of Middle Tennessee, and convenient locations in Nashville, Columbia, Murfreesboro, Dickson, and Lebanon. Stop by and see us today!

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