What Are Credit Reports?
Credit reports are prepared by companies called credit bureaus. Credit bureaus collect information about your history of payments on bills and loans. If a car dealer, bank, landlord, credit card company or other business is considering doing business with you, they may buy a credit report from a credit bureau to see whether you are a good risk. Some employers will also do a credit check on you when you apply for a job.
Credit reports contain information about an individual’s background and credit history, and these reports are used to determine if someone is credit worthy. In short, if you pay your mortgage late, file for a bankruptcy, or are denied a credit card, all of these items will be recorded in your credit report. Equifax, Trans Union, and Experian are the three major companies that compile credit information. These companies keep track of your addresses, mortgage payment history, checking accounts, credit card payment history and other similar information. They also list the balances you owe on your mortgage as well as credit cards. If you are a prompt payer of bills, this will be reflected in the credit reports. However, if you are habitually late with your monthly mortgage payment, store and bank credit cards, and have a judgment against you from a lawsuit, this will also show on your credit report. Based on your credit history, you are given a score. This score, in effect, determines the
A credit report is simply someone’s credit history. Loans, credit cards, judgments, etc – they’re all there. Many credit reports will also have a summary, which can quickly give an equipment financing company a clear snapshot of an applicant’s credit history. The three major credit reporting bureaus have credit reports on just about everyone. How do Equipment Finance Companies Use FICO Scores and Credit Reports? Most equipment finance companies will utilize FICO score “tiers” in looking at equipment financing applicants. For example, one may automatically approve any score over 680, while another might have a tier of 700. Still others may have a much lower overall number threshold, but look at the individual credit reports more closely by examining each line item rather than solely relying on the score. What matters most on credit reports to equipment financing companies? While anything on a credit report is fair game for scrutiny, there are several instances that many equipment financ
Your entire credit history is collected by three major bureaus and each uses its own reporting system. We will help you collect your reports and then we’ll help you translate them into information that is understandable and manageable. Sign up to become a member now and not only get help in colllecting your reports, but learn what to look for and how to understand the data within them. The number of Americans seeking the help of Credit Counselors doubled between 1999 to 2000.
