Almost everyone has a credit card or personal loan, whether it’s because they have borrowed money to purchase a car or a new house. This also means they have credit lines and reports, but most of us have no idea what it contains. Most people ignore the importance of credit reports and credit scores.
What Do Credit Reports Contain?
People are often surprised by the fact that credit reports contain financial data on your loans that date all the way back six years ago. Credit reports provide detailed insights on whether you pay your loans on-time regularly and how much you still owe. It also provides you with your credit limit information and more information about your personal finances that you may not even be aware you had convenient access to. Certain indications to keep an eye out for include: the letter “R” refers to revolving debt, or “I” which means installment accounts. Numbers that go from 0-9 represents a range that your debt is too new to rate or a bad debt.
It is also important to note that any company that is deciding whether or not to grant you credit can gain access to your credit report. Either good or bad credit information will remain on file for at least six years.
Featured Image Source: DepositPhotos © ginasandersPosted on May 30, 2017