What is a credit report?

A credit report is a record that contains information pertaining to your debts and the manner in which you have paid them back. In effect, your credit report provides a concise account of your financial history to companies who are thinking about lending you money.

You will receive negative marks on your credit report for different reasons related to negligence on your part. The most common type of negative mark relates to late payments.

Once you have obtained a negative mark, it will stay on your credit report for a long time. In most cases, this information is deleted after seven years. With bankruptcies or other situations that are considered extremely negative, the information can stay on your credit report for up to ten years.

It is a good idea to check your credit report for mistakes. Inaccuracies are pretty common, and they are usually relatively easy to clear up. Since they can affect the interest rate and terms you are offered, it is always a good idea to peruse your report carefully before you begin applying for mortgage loans.

There are actually three organizations that maintain these records: Trans Union, Equifax, and Experian. There might be slight variations among the three reports, but they should have the same basic information. You should check all of them to ensure that they are correct.

Depending on your circumstances, you might have to pay for your credit report. If you are unemployed or have had an application denied, you can probably get a free copy. If you find one or more mistakes, give the organization a call. They are required to investigate mistakes. Usually, they are cleared up easily.