What Makes Up a Persons Credit History?
The purpose of a credit report is to provide a snapshot of a person’s long-term credit habits. This information is used by lenders and agencies to determine the likelihood that an individual will repay a loan on time. Details on a credit report include the following: • Payments that are late by 30 or more days • The amount still owed on a loan • The size of monthly payments on loans • The total amount of credit open to the individual Any outstanding loans show up on a credit report, including those from auto companies, banks, credit cards, mortgage lenders, and even store credit cards. Because the monthly payment of loans can rise or fall with the interest rate, sometimes consumers use debt consolidation services to bundle a few loans into one, thereby reducing the total sum of their outgoing monthly payments. What Can Damage a Credit Rating? The red flag lenders look for are outstanding debts, and in particular those that are deemed permanent losses to lenders. Examples of permanent l
