Wednesday, February 21

Understanding Your Credit Report

When it comes to getting a car loan or mortgage, your reputation comes first. Your credit report gives banks and lenders a good idea of ​​whether you are a good candidate. Using the information, they contain and your financial history, they can estimate the likelihood of you repaying the money they gave you.

Although most people today know your credit score, this number is a composite of many other data points from your past activity. It can tell at a glance how strong your position is, but it alone doesn’t tell the whole story.

Understanding everything about your credit report can be important for a number of reasons. Not only does this give you more detailed insight into how lenders might view you, but it can also provide insight into how you can make better decisions about how you spend your money.

Your credit report shows a history of your credit cards, loans, and bills, and how you have or have not paid them. For example, you might think you have a good reputation, but a late payment could come back and haunt you when you want to buy a new car or rent an apartment. Seeing this in your report will help you correct any deficiencies and improve your score.

It is impossible to hide your financial life from lenders. Everyone should know what their credit report says about them and understand the implications. For more information, see the related resource.

This infographic was created by Stein Saks, TCPA lawyer